Oil prices declined on concerns over the global oil oversupply. Dow Jones reported that according to an Iranian oil official, the country would not cooperate to reduce oil output until its oil exports rise by 1.5 million barrels per day (bpd).

Reuters reported that according to its survey, OPEC's oil output climbed to 32.60 million bpd from a revised 32.31 million bpd in December due to higher output from Iran.

Earlier, oil prices increased on speculation that top oil producer could lower their oil output.

Market participants are also awaiting the release of the number of active U.S. rigs later in the day. The oil driller Baker Hughes reported on last Friday that the number of active U.S. rigs declined by 5 rigs to 510 last week. It was the lowest level since April 2010.

WTI crude oil for March delivery fell to $33.31 a barrel on the New York Mercantile Exchange.

Brent crude oil for March declined to $32.77 a barrel on ICE Futures Europe.