The International Energy Agency (IEA) released its monthly report on Wednesday. The agency upgraded its oil demand forecasts. The IEA expects the global oil demand in 2016 to decline to 1.2 million barrels a day.

"Momentum will ease towards its long-term trend as recent props - sharply lower oil prices, colder-than-year-earlier winter weather and post-recessionary bounces in some countries - are likely to give way," the IEA said.

The agency also said that global oil supply exceeds 97million barrels a day in October, driven by higher non-OPEC output.

OPEC crude supply was 31.76 million barrels a day in October. Higher oil output in Libya, Saudi Arabia and Nigeria offset lower oil output in Iraq and Kuwait.

Non-OPEC oil supply growth is expected to fall by more than 600,000 barrels a day in 2016, while OPEC oil supply is expected to increase to 31.3 million barrels a day in 2016, up 0.2 million barrels a day from last month.