Brent crude was steady above $110 on Wednesday, as investors turned cautious ahead of a European summit to deal with the region's debt crisis and the release of key Chinese economic data this week.

Market participants hope recent credit warnings by Standard & Poor's will drive European leaders to take more decisive action at Friday's summit. These expectations also pushed up Asian equities.

Brent crude fell 5 cents to $110.76 a barrel by 0443 GMT, after settling Tuesday $1 higher at $110.81 a barrel. US crude edged up 14 cents to $101.42 a barrel.

'The market is likely to stay cautious before the ECB rate decision and the EU summit on Friday. Investors have priced in a positive outcome at the summit, so we might see a sell-off if the meeting disappoints,' said Natalie Robertson, a commodities analyst with ANZ Bank in Melbourne.

Expectations of an interest rate cut by the European Central Bank (ECB) when it meets on Thursday have risen after statistics agency Eurostat confirmed estimates pointing to weakening growth, also aiding oil futures.

A sharper than expected fall in US crude stocks failed to boost oil prices, as the bullish data was offset by larger than projected builds in gasoline and distillate inventories, industry data showed on Tuesday.

A clearer picture of US stocks will emerge when the US Energy Information Administration announces its weekly report later on Wednesday.     

The market also awaits over the coming week the release of Chinese economic data likely to show further signs of cooling in the world's second-biggest oil consumer in November.

Ahead of the data's release, a senior official said on Wednesday China's annual rate of export growth slowed in November versus October. - Reuters