West Texas Intermediate futures for March delivery fell to $28.11 (-0.85%), while Brent crude declined to $27.68 (-2.12%) amid concerns over health of the global economy, which cast a shadow over demand prospects. The International Monetary Fund revised its 2016 global economic growth forecast to 3.4% from 3.6% projected earlier. Market participants are also concerned about China's slowing economy, which could cut demand. Meanwhile Iran is preparing to raise exports and add to the existing oversupply issue.

Venezuela has requested an emergency OPEC meeting, however many experts believe that such a meeting was unlikely.