West Texas Intermediate futures for February delivery climbed to $30.60 (+0.69%), while Brent crude advanced to $29.19 (+2.24%) as data on China's oil demand outweighed concerns over upcoming supplies from Iran. Sources reported that China increased its oil demand by 2.5% in 2015 compared to 2014 despite slowing economy. Preliminary estimations suggest that demand stood at 10.32 barrels per day.

Nevertheless analysts point to the supply glut issue and potential increase in supplies from Iran. Goldman Sachs forecasts Iran's production to rise by 285,000 barrels per day year-on-year in 2016 while BMI Research estimates the rise could be by as much as 400,000 bpd.