Oil prices in Asia fell below $97 a barrel Wednesday, pushed by China's retreating inflation rate.

At midday Singapore time, benchmark crude for December delivery drew 12 cents at $96.92 a barrel in electronic trading on the New York Mercantile Exchange. The contract climbed $1.28 in New York on Tuesday, settling at $96.80.

On the ICE Futures Exchange in London, Brent crude rose 57 cents at $115.57 a barrel.

China reported on Wednesday its consumer prices soared 5.5 per cent from a year earlier, down from September's 6.1 per cent and a 37-month high of 6.5 per cent in July.

Oil traders and analysts are closely monitoring the latest U.S. crude inventory figures. According to the American Petroleum Institute on Tuesday, crude inventories reached 148,000 barrels last week. On the other hand, analysts interviewed by Platts predicted a million barrel hike.

Inventories of gasoline last week dropped 1.5 million barrels while distillates fell 2.9 million barrels.

In other Nymex trading, heating oil grew 1.6 cents to $3.13 per gallon and gasoline futures added 1.9 cents to $2.73 per gallon. Natural gas fell 0.4 cent at $3.74 per 1,000 cubic feet.

Meanwhile, although oil prices are soaring again, it will take quite a while for gasoline prices to create a massive dent in the lives of motorists.

Though the price of crude is nearing $100 a barrel, gasoline pump prices continue to be cheaper.

"Enjoy it while you can," Ben Brockwell, pricing director at the Oil Price Information Service, told The the Atlanta Journal-Constitution, adding the spike may come in the spring.

Brockwell expects gasoline prices, which peaked $3.98 per barrel early May, may hit $4 per gallon early next year.

This year alone, the Americans have bought less gasoline because of the weaker economy, maintaining prices at even levels even as oil soars.