WTI gained slightly early Tuesday, but had erased most of its initial gains. Brent oil turned negative after holding slightly higher.
Early in the day, the International Energy Agency said that oil demand growth would fall further in 2016, casting doubt on hopes that oil prices might have bottomed.
The only U.S. data of note out on Tuesday is wholesale inventories and JOLTS (Job Openings and Labor Turnover Survey), both for December and out at 10 a.m. ET.
President Barack Obama's Federal budget for the fiscal year of 2017 will be published at 11 a.m. Proposals include a $10-a-barrel tax on crude oil, but may garner little attention given the presidential election scheduled for November.
On Monday, Michael Bloomberg, the former New York mayor, said he was considering running for U.S. president, potentially adding a new dimension to the 2016 presidential race.
Federal Reserve Chair Janet Yellen is due to testify before Congress on Wednesday and Thursday.
U.S. stocks indexes were sharply lower for most of Monday, but closed off session lows after a late rally in shares of energy companies.