Oil prices declined on a drop in global stock markets and on concerns over the global oil oversupply.

The International Energy Agency (IEA) released its monthly Oil Market Report on Tuesday. The agency said that global oil supply fell by 200,000 barrels a day to averaged 96.5 million barrels a day in January compared with January 2014.

According to the IEA, OPEC production increased by 1.7 million barrels a day to 32.63 million barrels a day in January, compared with the previous month. The increase was driven by higher output from Iran.

Non-OPEC supply declined by 500,000 barrels a day in January. The IEA expects non-OPEC output to drop by 600,000 barrels a day to 57.1 million barrels in 2016.

The agency lowered its OPEC output for 2016 by 100,000 bpd to 31.7 million barrels a day.

Market participants are awaiting the release of U.S. crude oil inventories data. The American Petroleum Institute (API) is scheduled to release its U.S. oil inventories data later in the day, and U.S. oil inventories data from the U.S. Energy Information Administration is expected on Wednesday.

WTI crude oil for March delivery declined to $29.65 a barrel on the New York Mercantile Exchange.

Brent crude oil for March fell to $31.96 a barrel on ICE Futures Europe.