Brent crude oil traded at $114.57 at 10:21 GMT on Thursday morning after falling to $114.30, its lowest value in 2013, on Wednesday.
CNBC reported that the commodity's sharp decline was attributed to fear that the US Federal Reserve would end its stimulus program ahead of expectations coupled with a projected increase in Saudi Arabian oil output.
On Tuesday, reports from oil industry sources claimed that Saudi Arabia would raise its oil production during the second quarter in order to meet Chinese demand. Saudi leaders cut oil supply in 2012 in a proactive measure to counterbalance demand worries.
While the volume of the second quarter increase has not yet been confirmed, the news put crude prices under pressure.
The main driver of the commodity's fall was Wednesday's Federal Reserve policy meeting report. Minutes from the meeting showed that there was a growing disagreement over the current stimulus plan.
Many are expecting that the US central bank will not continue on its current path of bond buying, after hearing that many of the Federal Reserve officials think the bank should slow or stop asset purchases.
Brent found a bit of support from tension between the West and Iran over the Iranian nuclear development program. However, with a meeting set for next week, many investors are expecting the pressure to ease should negotiations move forward.
On Wednesday, a western diplomat confirmed that they were prepared to put a “substantial and serious offer' on the table at the talks next week.
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