Global oil prices extended losses Wednesday despite escalating concerns over Middle East and North Africa unrests.
Light sweet crude for April, delivery was seen trading at $104.51 a barrel at 12.00 noon Singapore time while Brent crude for April delivery was at $112.47 a barrel in London.
Analysts attributed oil's second day dips to OPEC's decision to open up talks for possible oil output increase in the wake of losses due to Libya crisis.
However Opec's second largest producer Iran said there is no need for further opec supply and added that fears of crude oil supply shortages among consumers were a psychological problem.
Iran is the current chair of OPEC, giving it the power to decide whether to call an emergency meeting where OPEC member countries could vote to increase monthly oil production targets.
The black gold was also aided by sharp increase in U.S. crude inventories. American Petroleum Institute said US crude inventories climbed 3.8 million barrels last week to 348.5 million.
On Tuesday, oil fell for the first time this week after reports of OPEC considering oil output hikes in the wake of the Libyan uprising.
Benchmark oil for April delivery fell 42 cents to settle at $105.02 a barrel on the New York Mercantile Exchange. In London, Brent crude fell $1.98 to settle at $113.06 per barrel.
