Forecasts for Brent and WTI are not optimistic.

European equities opened flat Tuesday as investor sentiment is shaken by a renewed decline in oil prices on the back of weak China data and concerns over earnings.

Ratings agency Moody's has cut its price outlook for the both Brent crude and WTI, believing the rise in prices will take place at a much slower pace than originally forecast as oversupply and demand issues show no signs of waning. The agency downgrade it price assumption in 2016 for Brent crude to $53 per barrel, down from $57. WTI was cut to $48 from $52 per barrel. Moody's expects both prices to rise by $7 per barrel in 2017, which is down $5 per barrel from its prior forecast.

"Although supply should begin to drop as capital spending declines, increased Iranian exports could place additional pressure on oil prices in 2016," said for CNBC Steve Wood.

Oil prices suffered on Monday following economic data from China, the world's largest energy importer, which showed its economy grew at the slowest pace in six years. For this turn-down helped the information that the largest exporter Saudi Arabia has reduced the average daily exports in August, which immediately formed the opinion the market for a new drop in demand.

G.Hristov / Head of Fundamental Analyzes