Oil prices declined on concerns over the global oil oversupply. News reported that Iran plans to boost its exports to 2.3 million barrels per day in the next fiscal year starting on March 21.

Russia's Energy Ministry released its oil output data on Tuesday. Oil output in Russia increased by 1.5% to 10.88 million barrels per day (bpd) in January from 10.83 million bpd in December.

Russian Foreign Minister Sergei Lavrov said on Tuesday that Russia is ready to cooperate with the Organization of the Petroleum Exporting Countries (OPEC) to stabilise the oil market.

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 Wednesday.

WTI crude oil for March delivery fell to $29.81 a barrel on the New York Mercantile Exchange.

Brent crude oil for April declined to $32.50 a barrel on ICE Futures Europe.