Tuesday saw a decline in oil prices, giving up earlier gains, as worries over surplus production and slowing demand growth overshadowed growing supply risks in the Middle East following a ship raid by the Houthis, who are affiliated with Iran.

Brent crude dipped 0.4% to $75.71 per barrel meanwhile US WTI slumped by 0.3% to $71.13 per barrel.

As OPEC and the International Energy Agency disagree on how much, the increase of the world's oil demand is expected to slow down in 2024. A recent agreement by OPEC+ to restrict supplies also failed to impress the market. This week, both the IEA and OPEC revise their projections.

A significant report on U.S. inflation and an interest rate decision also made investors wary. Two days of policy meetings of the Federal Open Markets Committee conclude on Wednesday, while the CPI report is scheduled to be released on Tuesday.

Discussions at the COP28 climate conference are also a focus. There, negotiators are anticipating a revised draft agreement after numerous nations criticized the previous one for being too weak and failing to include a "phase-out" of fossil fuels.