The Organization of the Petroleum Exporting Countries (OPEC) released its monthly report on Monday. OPEC said that oil prices will start to recover this year, adding that supply from non-OPEC members will decline due to low oil prices.

"The analysis indicates that 2016 will be a supply-driven market. It will also be the year when the rebalancing process starts," OPEC said in its report.

Supply from non-OPEC members is expected to fall by 660,000 barrels per day (bpd) in 2016.

OPEC's output declined by 210,000 bpd to 32.18 million bpd in December, according to the report.

Global oil demand is expected to climb by 1.26 million bpd in 2016, OPEC noted.