Oil prices declined on concerns over the global oil oversupply. International Energy Agency (IEA) Executive Director Fatih Birol said in an interview with Bloomberg Television on Wednesday that oil prices will remain under pressure.

"It is the third year in a row we have more supply than demand. Prices will be still under pressure. I don't see any reason why we have a surprise increase in the price in 2016," he said.

Market participants are awaiting the release of U.S. crude oil inventories data. The American Petroleum Institute (API) is scheduled to release its U.S. oil inventories data later in the day, and U.S. oil inventories data from the U.S. Energy Information Administration is expected on Thursday.

WTI crude oil for March delivery dropped to $26.85 a barrel on the New York Mercantile Exchange.

Brent crude oil for March rose to $27.93 a barrel on ICE Futures Europe.