Brent crude fell $2

Almaty. March 9. Kazakhstan Today - Brent crude fell nearly $2 on Tuesday to $113 a barrel, Kazakhstan Today reports.

Brent crude fell nearly $2 on Tuesday to $113 a barrel as OPEC said it was in talks to boost production for the first time in more than two years but shares remained volatile as Libyan warplanes attacked rebel positions, The Telegraph reported.

Oil prices dipped in evening trade with US light crude down 80 cents to $104.64 a barrel, and Brent crude down $2.38 at $112.66 a barrel, BBC News informs.

Investors continue to watch OPEC for any sign of an increase in output.

Members of the cartel of oil producing nations have been informally discussing whether an emergency meeting to discuss output levels was required.

Kuwait's oil minister said that OPEC would now have to decide if there was a need to increase production.

Sheikh Ahmad al-Abdullah al-Sabah, the Kuwait Oil Minister, told reporters that OPEC was in "consultations about a potential output increase", but said there was no decision for the group to produce over quotas yet, The Telegraph reporter informed.

However the organisation has differences over increased supply. Iran, which holds OPEC's rotating presidency, saying there was no need for a boost in production as consumer worries over supply were mostly "psychological".

An official output increase by OPEC would signal the group's determination to put a cap on prices and keep the global economic recovery on track.

Oil spiked to two-and-a-half-year high last month after revolutions in Tunisia and Egypt and protests from Morocco to Oman. A brewing civil war in Libya has idled as much two-thirds as of the country's oil output, or 1m barrels per day (bpd),

Saudi Arabia, the world's largest oil exporter and home to most of the spare capacity held by the Organization of the Petroleum Exporting Countries, is pumping about 9m barrels a day, almost 1m bpd above its quota.

US crude, which closed above $105 on Monday - its highest since September 2008 - rose back to $105.15 on Tuesday after earlier slide $1.29 to $104.15.

Nerves over Libya returned when Colonel Gaddafi sent warplanes to strike at rebel forces behind the war's eastern frontlines as he stepped his counter offensive.

High oil prices pose a threat to fragile economies, including Britain. "Along with fiscal tightening and food prices, oil prices are a real threat to the UK," said Julian Jessop, an economist at Capital Economics.

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