West Texas Intermediate futures for March delivery declined to $31.07 (-1.21%), while Brent crude declined to $31.61 (-0.60%) erasing some of yesterday's gains amid profit-taking.

There are talks about a possibility of a deal between oil producers in an attempt to stop price declines. However analysts say that any deal of that kind is unlikely.

The World Bank cut its crude price forecast for 2016 to $37 a barrel from $51 per barrel forecasted earlier. John Baffes, senior economist at the World Bank, said: "Low prices for oil and commodities are likely to be with us for some time. While we see some prospect for commodity prices to rise slightly over the next two years, significant downside risks remain."