Oil prices climb more than 3%

Oil prices climbed on news that oil producer could cooperate to cut oil output.

The Iraqi oil minister, Adel Abdul Mahdi, said that Saudi Arabia and Russia are more flexible in considering the oil output cut.

Kuwait's Organization of the Petroleum Exporting Countries (OPEC) Governor Nawal al-Fuzaia said that OPEC is ready to cooperate to stabilise the oil market.

"Non-OPEC producers keep on making statements that they are willing to cooperate but the reality is different," she noted.

The World Bank released its annual Commodity Markets Outlook on Tuesday. The bank lowered its crude oil prices forecasts to $37 a barrel for 2016, down from its previous estimate of $51 a barrel. According to the World Bank, the reason for the downgrade is higher supply and weak demand.

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 rose to $31.41 a barrel on the New York Mercantile Exchange.

Brent crude oil for March increased to $31.72 a barrel on ICE Futures Europe.