UPDATE 1-U.S. oil hits 14-mth high on stocks drawdown
* Dismal China trade data caps oil price gains
* U.S. crude oil stocks likely fell for 2nd week-poll
* Brent's premium to U.S. crude narrows
* Coming Up: EIA oil data; 1430 GMT
(Adds details; updates prices)
SINGAPORE, July 10 (Reuters) - Oil prices on both sides of the Atlantic rose on Wednesday, with the U.S. benchmark climbing to a 14-month high near $105 per barrel, buoyed by a bigger-than-expected drop in inventory in top oil consumer the United States.
But worries about a sluggish Chinese economy, underlined by bleak June trade data, kept a lid on oil price gains.
U.S. crude rose 90 cents to $104.43 a barrel by 0625 GMT, after hitting a 14-month high of $104.79.
Brent edged up 14 cents at $107.95 a barrel, slipping from a high of $108.12 after the data from China that fuelled worries about demand from the world's No.2 oil consumer.
"China was the big focus for a while but now it seems the U.S. is the main driver for both bullish and bearish views," said Tony Nunan, risk manager at Mitsubishi Corp.
"Suddenly, it seems investors have caught on to (U.S. oil) as the investment of choice," he said.
The spread between Brent and U.S. oil <CL-LCO1=R> narrowed 76 cents to $3.52 as the U.S. benchmark gained on data showing a drawdown in stocks.
U.S. crude stocks fell nearly 9 million barrels last week, compared with analysts' expectations for a drop of 3.3 million barrels, according to the American Petroleum Institute. The U.S. Energy Information Administration is scheduled to release its inventory report later in the day.
But analysts pointed out that the drop in U.S. stockpiles, which is boosting oil prices, is because of the summer driving season there and that the global demand prospects remain weak.
"The market is too high from a fundamentals point of view. It is riding on the back of expectations of a revival in U.S. demand. But that revival we are seeing now is more seasonal, and there is no clear indication yet of a steady revival in demand," said Jonathan Barratt, chief executive of Sydney-based commodity research firm Barratt's Bulletin.
China, the world's No.2 economy, warned of a "grim" outlook for trade as it surprised markets by reporting a fall in June exports and imports when both had been expected to rise.
Its crude imports for the first half of the year fell 1.4 percent from a year ago.
"I expect crude oil imports will continue to slow because the overall economy is slowing," Barratt said.
Barratt added that given the bleak demand outlook, Brent should be below $100 a barrel and U.S. crude oil at around $85.
The International Monetary Fund trimmed its global growth forecast on Tuesday for the fifth time since early last year, due to a slowdown in emerging economies and recession-struck Europe, which also put a lid on oil prices.
But geopolitical risks remained and investors continued to watch the situation in Egypt, helping cushion oil prices.
Egypt's interim authorities, boosted by $8 billion in Gulf aid, start work on forming a cabinet on Wednesday, a week after the elected Islamist president was ousted by the army leading to a wave of violence in which at least 90 people were killed.
(Additional reporting by Manash Goswami; Editing by Himani Sarkar)