SINGAPORE, Dec 26 Reuters Oil prices edged higher on Thursday in thin holiday trading, driven by hopes for additional fiscal stimulus in China, the world39;s biggest oil importer, while an anticipated decline in U.S. crude inventories also provided support.

Brent crude futures rose 13 cents, or 0.2, to 73.71 a barrel by 0650 GMT. U.S. West Texas Intermediate crude was at 70.21 a barrel, up 0.2, or 11 cents, from Tuesday39;s preChristmas settlement.

China plans to boost fiscal support for consumption next year by increasing pensions and medical insurance subsidies for residents and expanding tradeins for consumer goods, according to a finance ministry announcement on Tuesday.

Meanwhile, Chinese authorities have agreed to issue 3 trillion yuan 411 billion worth of special treasury bonds next year, Reuters reported on Tuesday, citing two sources, as Beijing ramps up fiscal stimulus to revive a faltering economy.

Crude oil prices have risen this week, driven by news that Chinese authorities are implementing a recordbreaking 3 trillion yuan fiscal stimulus to boost their struggling economy, said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Additionally, a decrease in U.S. crude oil inventories, which indicates healthy demand, has also supported prices.

Satoru Yoshida, a commodity analyst at Rakuten Securities, said expectations of increasing fossil fuel production and demand after U.S. Presidentelect Donald Trump takes office next month are also bolstering…