West Texas Intermediate futures for February delivery is currently at $36.88 (+0.19%), while Brent crude is at $36.67 (+0.14%) after suffering heavy losses in the previous session amid renewed concerns over demand growth in the oversupplied market.

Oil analysts JBC Energy estimated that oil demand growth in Europe posted a loss of 170,000 barrels per day on an annualized basis turning negative for the first time in 10 months. Analysts also said that China, world's second-biggest oil consumer, recorded slower diesel and gasoline demand growth.

Meanwhile Iran oil minister Bijan Namdar Zangeneh said that a return to pre-sanctions output volume is the country's target.

Gold climbed to $1,072.50 (+0.39%), but remained under pressure amid falling oil prices. The precious metal is often seen as a hedge from oil-led inflation, that's why low oil prices ease inflation concerns and reduce demand for bullion. This week trading is likely to remain thin. Gold is expected to be range-bound for the rest of the year.

Some analysts expect gold to trade lower and decline to $1,000 an ounce in 2016 amid prospects of further rate hikes by the Federal Reserve. Assets of SPDR Gold Trust, the biggest gold-backed exchange-traded fund in the world, fell by 0.18% to 643.56 tonnes on Monday.

(raw materials / closing price /% change)

Oil 36.69 -0.33%

Gold 1,068.50 +0.02%