WASHINGTON (dpa-AFX) - Oil prices edged higher on Thursday amid hopes for China's stimulus measures and expectations of a decline in U.S. crude inventories.
Benchmark Brent crude futures rose 0.3 percent to $73.42 a barrel in European trade, while WTI crude futures were up 0.4 percent at $70.36.
Earlier this week, China's finance ministry announced that it will ramp up fiscal support for consumption next year by raising pensions and medical insurance subsidies for residents as well as expanding consumer goods trade-ins.
According to Reuters, authorities have agreed to issue 3 trillion-yuan ($411.04 billion) worth of special treasury bonds next year to revive a faltering economy.
Meanwhile, there are expectations that fossil fuel production and demand will expand after U.S. President-elect Donald Trump takes office on January 20.
It is believed that demand will improve under Trump's reform programs and the U.S. crude inventories might face sharp daily drawdowns in 2025.
Traders were also reacting to industry data showing a fall in U.S. crude oil and distillate stocks last week.
The American Petroleum Institute figures revealed that U.S oil inventories fell by 3.2 million barrels during the week ended Dec. 20.
Distillate inventories-which include diesel and heating oil-fell by about 2.5 million barrels but gasoline inventories rose by 3.9 million barrels.
The latest data from the Energy Information Administration is due on Friday, with analysts anticipating a decline in U.S. crude and fuel inventories.
Elsewhere, Libya's National Oil Corp (NOC) said on Wednesday that the country's average crude production in 2024 exceeded its target of around 1.4 million barrels per day.
The United States government has imposed sanctions on four companies for their involvement in the transport of Iranian petroleum.
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