There has been another drop in worldwide oil prices due to the increasing oversupply.

Brent slipped 86 cents and traded at $37.59 a barrel, while the West Texas Intermediate crude futures fell 60 cents to $36.75 a barrel, Reuters reported.

Oil prices could be under further strain as the US Federal Reserve could hike the interest rate, which could strengthen the dollar and make dollar denominated commodities more expensive.

"Brent slipped 86 cents and traded at $37.59 a barrel."

Investors are also keenly awaiting data to be released by the US Energy Information Administration.

The American Petroleum Institute also released data, which highlighted an increase of 2.3 million barrels in US inventories last week.

This is against a Reuters poll of analysts that forecast a 1.4 million barrels fall.

In the latest Reuters poll of more than 90 economists, taken from 4 to 9 December, the probability that the Fed will raise rates from near zero, increased to 90% from 70%.

The price of OPEC basket of 12 crudes stood at 32.61 dollars a barrel on Tuesday, compared with $32.60 the previous day.

According to some experts, the prices could drop further if supplies outstrip demand.

Adding further pressure to the already oversupply concerns, US lawmakers are poised to lift a 40-year ban on oil exports.