North American stocks will likely to open flat Wednesday as oil prices continue to show strength.

On Wednesday, the International Energy Agency, which narrowly trimmed its forecast for world-wide oil demand, said that oil price strength is beginning to show. “Robust global economic growth continues to support oil product demand, but the negative effects of high oil prices are visible in most areas,” the Paris-based agency said.

Crude-oil futures slipped 5 to US$68.93 a barrel in electronic trading on Wednesday, with U.S. weekly inventory data to come at 10:30 a.m.

In economic news, Canadian exports slumped in February following large increases in recent months. Statistics Canada said a slightly larger drop in imports from record high values resulted in Canada’s merchandise trade surplus edging up to $6.3 billion in February.

South of the border, the U.S. trade deficit narrowed by 4.1% to US$65.74 billion during February as purchases of foreign oil, automobiles, and other goods decreased.

In other news, the Conservatives will rein in unnecessary government spending and will keep their promise to pay down some of Canada’s debt, Finance Minister Jim Flaherty said Tuesday.

“It should come as no surprise that, those of you who knew me in Ontario, that I believe in balanced budgets and paying down debt,” he told members of the Investment Dealers Association of Canada in Toronto.

Most Asian markets fell with the Japanese benchmark Nikkei 225 index declined 255.58 points, or 1.47%, to 17,162.55 points.

In Hong Kong, shares fell for a second-straight day. The blue-chip Hang Seng Index fell 165.05 points, or 1%, to 16,310.76.

Toronto stocks fell Tuesday, despite higher oil prices, as investors stepped back from recent strong gains on the market.

The S&P/TSX composite index fell 112.40, or 0.91%, to 12,177.30.

The S&P/TSX Venture composite index fell 55.90, or 1.83%, to 2,991.40.

In New York, markets fell on concerns over inflation, higher oil prices and geo-political instability.

The Dow industrials fell 51.70 points to 11,089.63, the Nasdaq Composite index dropped 22.92 points to 2,310.35, and the S&P 500 Index dropped 10.04 points to 1,286.56.