Oil falls for second day

Singapore: Oil prices fell for a second day on Wednesday, as OPEC is raising production, led to an increase in Asian stock markets, though investors remained on edge because of the turmoil in the Middle East.
Euro nursed heavy losses in early Asia as worries about the European sovereign debt problems intensified after the credit rating of Moody's downgrade to Greece on Monday.
U.S. crude in April dropped to $ 104.63 a barrel, easing further from the 2-1/2 year high hit on Monday after Kuwait's oil minister said the Organization of Petroleum Exporting Countries (OPEC) is considering the possibility of increasing supply to offset shortages in Libya, where government troops are trying to cancel a popular uprising.
North Sea Brent Crude has fallen nearly 50 cents to $ 112.60.
The official oil production increase by OPEC would mean the definition of limit prices, but unrest in the region, concerns over supplies of scrap.
"Oil has stopped growing at the moment, but it does not back down to levels that allow the aggressive buying of risky assets, so that investors will still be nervous," said Hiroichi Nishi, general manager of Nikko Cordial Securities.
Japan Nikkei benchmark extended gains for second day after the rollback in oil prices lifted Wall Street, but investors are worried that remained high fuel prices could stunt global economic growth and undermine corporate earnings.
By morning, the test Nikkei rose 1.3 percent, or 133.52 points, to 10,659.55. Broader Topix index gained 1.3 percent to 951.07. It broke above its 25-day moving average, a key technical level of the closely watched Japanese traders now 10,630.45.
The MSCI index of Asia Pacific stocks outside Japan rose 0.01 percent, led by advances in consumer durables and financial.
Korea Composite Stock Price Index (KOSPI) rose 0.20 percent to 2,000.28 points 0205 GMT, after crude oil prices dippped, with banks, ahead of central bank interest rate meeting on Thursday.
The Bank of Korea is expected to raise rates to curb price pressures after surprising markets, leaving rates unchanged in February.