TOKYOSINGAPORE, Feb 1 Reuters Oil prices edged up on Thursday, supported by signals from the U.S. Federal Reserve on a possible start to rate cuts and as China unveiled new support measures for its embattled property market.

Brent crude futures inched up 5 cents to 80.60 a barrel and U.S. West Texas Intermediate crude futures gained 7 cents to 75.92 at 0651 GMT, after falling by more than 2 a barrel in the previous session.

Oil prices are likely supported by expectations for rate cuts this year following a speech by Federal Reserve Chair Jerome Powell on Wednesday, CMC Markets analyst Tina Teng said.

Powell said on Wednesday that interest rates had peaked and would move lower in coming months, with inflation continuing to fall and an expectation of sustained job and economic growth.

Reinforcing views that the central bank could start cutting interest rates by June, data showed U.S. labour costs rose less than expected in the fourth quarter and the annual increase was the smallest in two years.

Lower rates and economic growth are supportive for oil demand.

China, the world39;s second biggest economy, unveiled new property support measures amid concerns about the fallout from the liquidation of developer Evergrande and as the country ended last year with the worst declines in new home prices in nearly nine years.

Analysts at JPMorgan said they expected China to remain the single largest contributor to global oil demand growth this year, forecasting oil demand there…