New York's main contract, light sweet crude for delivery in May, slipped 32 cents to $105.93 per barrel.
Brent North Sea crude for May delivery shed 17 cents to $120.75.
Crude markets were hit by heavy overnight losses on Wall Street as well as bearish forecasts of energy demand from the International Energy Agency (IEA) and Organisation of Petroleum Exporting Countries (OPEC), analysts said.
"I think its basically overnight weakness because yesterday we saw crude oil prices plunging quite a bit," said Serene Lim, oil and gas analyst for ANZ bank in Singapore.
"I think it's just very weak sentiment in the market, poor US equities performances overnight and very bearish news from the forecasters like IEA and OPEC," she told AFP.
US stocks suffered heavy losses Tuesday -- with the Dow Jones Industrial Average falling 0.95 percent at the close -- dragged down by the materials and energy sectors.
A day before, the IEA had warned that crude prices' recent ebullient run risked curtailing global demand for energy and posed a "real risk" of derailing the world's economic recovery.
Oil cartel OPEC on Tuesday agreed with the IEA's grim assessment that crude prices were "out of step with the realities of supply and demand".
"In terms of fundamentals, the recent events alone do not justify the current high price levels... Instead, these represent a sharp increase in the risk premium, reflecting fears of a shortage in the market in the coming quarters," it added.