The International Energy Agency (IEA) released its monthly report on Tuesday. The agency said that global oil oversupply will remain next year as global demand is expected to slow. Global oil demand growth is expected to decline to 1.2 million barrels per day (mb/d) in 2016 from 1.8 mb/d in 2015, down 150,000 barrels per day from its September estimate.

"A projected marked slowdown in demand growth next year and the anticipated arrival of additional Iranian barrels - should international sanctions be eased - are likely to keep the market oversupplied through 2016," the IEA said in its report.

Global oil supply totalled about 96.6 million barrels a day in September. Lower non-OPEC oil output was offset by higher OPEC oil output.