Moody's Investors Service lowered its oil forecasts on Tuesday. The agency expects Brent price of $43 a barrel in 2016, down from an earlier forecast of $53, and WTI price of $40 per barrel in 2016, down from an earlier forecast of $48. Brent and WTI prices are expected to increase $5 per barrel in 2017 and 2018.

"Moody's Investors Service has significantly lowered its price assumptions for Brent crude and West Texas Intermediate crude as continued high levels of production by global oil producers has significantly exceeded growth in oil consumption. The potential lifting of Iranian sanctions could add significant supply to the market in 2016, offsetting or even exceeding expected declines in US production. The rating agency says this will lead to a prolonged period of oversupply that will continue to keep oil prices low," the agency said in its statement.