West Texas Intermediate futures for February delivery, which expires today, fell to $28.72 (-2.87%), while Brent crude dropped to $28.15 (-2.12%) amid the ongoing global supply glut. The International Energy Agency warned that supplies will be excessive this year. Market participants are bracing for Iran to boost exports.

Investors are waiting for the American Petroleum Institute to release its inventories forecast later today. Official data from the Energy Information Administration will be published on Thursday.