New York's main contract, light sweet crude for delivery in May, fell 37 cents to 106.74 a barrel. Brent North Sea crude for May delivery shed 48 cents to 122.40 in London trade.
"Sentiments are not as bullish as before and crude oil could continue to dip slightly, looking for support at 105 per barrel," said Ong Yi Ling, investment analyst for Phillip Futures in Singapore.
"There are also concerns that the high crude oil prices could see economic growth being stifled, and you see prices correcting rather sharply," she said.
Crude prices fell by six percent on Monday and Tuesday before rebounding briefly. Concerns about tight supplies spurred by revolts in the Arab world had driven crude oil prices recently above two-year highs.
But a warning from Goldman Sachs on Tuesday that investors should take profits from the overinflated commodities markets sent oil prices tumbling.
The International Monetary Fund has also warned this week that soaring oil prices are a risk to global growth.