Oil prices fell below $29 a barrel on concerns over the global oil oversupply. International sanctions on Iran were lifted over the weekend after the International Atomic Energy Agency announced that Tehran had fulfilled its commitment.

Iran said on Sunday that it plans to raise its exports by 500,000 barrels per day.

Iran is a member of the Organization of the Petroleum Exporting Countries (OPEC), and is the fifth biggest OPEC oil producer.

The Organization of the Petroleum Exporting Countries (OPEC) released its monthly report on Monday. OPEC said that oil prices will start to recover this year, adding that supply from non-OPEC members will decline due to low oil prices.

"The analysis indicates that 2016 will be a supply-driven market. It will also be the year when the rebalancing process starts," OPEC said in its report.

Supply from non-OPEC members is expected to fall by 660,000 barrels per day (bpd) in 2016.

OPEC's output declined by 210,000 bpd to 32.18 million bpd in December, according to the report.

Global oil demand is expected to climb by 1.26 million bpd in 2016, OPEC noted.

WTI crude oil for March delivery dropped to $28.36 a barrel on the New York Mercantile Exchange.

Brent crude oil for March slid to $27.67 a barrel on ICE Futures Europe.