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.

Gold price declined slightly despite a weaker U.S. dollar. Gold on Monday rose on demand for safe-haven assets as global stock markets dropped due to concerns over the weak global economic growth and falling oil prices.

Market participants are awaiting a speech by the Fed Chairwoman Janet Yellen. She will testify before Congress on Wednesday and Thursday. Yellen will report on monetary policy. Hints for further interest rate hikes are likely to weigh on gold price.

March futures for gold on the COMEX today decreased to 1192.90 dollars per ounce.

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.

"Persistent speculation about a deal between OPEC and leading non-OPEC producers to cut output appears to be just that: speculation. It is OPEC's business whether or not it makes output cuts either alone or in concert with other producers but the likelihood of coordinated cuts is very low," the agency said.

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.

West Texas Intermediate futures for March delivery climbed to $30.02 (+1.11%), while Brent crude is currently at $32.94 (+0.18%) after posting steep losses on Monday. Oil prices paid little attention to sharp declines in Japanese stocks.

Oil prices fell more than by 3% on Monday as market participants continued assessing the outcome of a meeting between oil ministers from Saudi Arabia and Venezuela. The meeting, which was held on Sunday, resulted in no output cut agreement. There were also no comments about an OPEC meeting Venezuela was calling for.

Yesterday Morgan Stanley warned that the supply glut will persist throughout 2016.

Gold is currently at $1,193.00 (-0.41%). The precious metal stepped down from its yesterday high, but traded close to an eight-month high as fresh declines in equity markets increased demand for safe-haven assets. Monday was gold's seventh straight day of gains. The U.S. dollar, bullion's traditional opponent got weaker recently amid considerations that the Federal Reserve may not be able to raise interest rates soon.

(raw materials / closing price /% change)

Oil 30.12 +1.45%

Gold 1,189.60 -0.69%