London - Global oil prices fell Wednesday as caution set into the market before the weekly US crude inventory report, while dealers also mulled Chinese trade data.
Brent North Sea crude for delivery in May dipped 43 cents to $105.80 per barrel in early afternoon deals in London.
New York's main contract, West Texas Intermediate (WTI) light sweet crude for May shed 39 cents to $93.81 a barrel.
“Crude oil prices slid lower ahead of the release of the weekly EIA oil inventories report,” said Sucden analyst Myrto Sokou.
“The oil market was initially supported from Chinese trade balance data, but gains were limited following renewed concerns about further builds in crude oil stocks.”
Analysts expect the US government's Energy Information Administration's weekly petroleum stockpiles report to show another increase in supplies.
That would reflect weaker demand in the world's biggest economy and put downward pressure on prices.
“Cautious dealers are repositioning themselves for the US inventory report after a rally in prices,” Ric Spooner, chief market analyst at CMC Markets in Sydney, told AFP.
“The market has a 'wait-and-see' attitude in the meantime.”
China's customs agency said Wednesday that exports had climbed a below forecast 10.0 percent last month, and imports jumped a bigger-than-expected 14.1 percent, while the country saw a trade deficit of $880 million.
Economists had tipped a surplus of $14.7 billion.
The cost of oil had risen at the start of the week on strong Japanese equities, a subdued inflation report from China and a weaker dollar.
China had revealed on Tuesday that the consumer price index rose 2.1 percent in March.
That was well below February's 10-month-high of 3.2 percent and below the 2.4 percent CPI reading forecast by analysts.
The slowdown in inflation eased investor concerns that China - the world's biggest energy consumer and second largest economy - would want to tighten monetary policy. - Sapa-AFP