West Texas Intermediate futures for January delivery is currently at $36.22 (-0.25%), while Brent crude is at $37.78 (-0.37%) amid persistent global supply glut concerns, which pushed prices down to nearly 11-year lows on Monday.

The latest IEA monthly report said the growth of global oil demand will slow to 1.2 million barrels a day next year compared with 1.8 million barrels a day in 2015. Meanwhile OPEC suggests global demand growth to slide to 1.25 million barrels a day from 1.53 million barrels a day in the current year. Market participants are also preparing for additional supplies from Iran, which are expected to hit the market next year.

Meanwhile the weather outlook suggests a mild winter, which will not boost demand for heating. According to BNP Paribas Russia, Canada, the U.S., Japan and South Korea will see milder than normal temperatures in the next two weeks.

Investors are also preparing for the two-day Fed meeting, which starts later today.