Investors eye further US interest rate cuts
China growth stimulus policies in focus
Traders also look to potential hike in Saudi crude prices

SINGAPORE, Jan 3 Reuters Oil prices barely budged on Friday after closing at their highest in more than two months in the prior session, amid hopes that governments around the world may increase policy support to revive economic growth that would lift fuel demand.

Brent crude futures edged up 1 cent to 75.94 a barrel by 0720 GMT, after settling at its highest since Oct. 25 on Thursday. U.S. West Texas Intermediate crude was also up 1 cent at 73.14 a barrel, with Thursday39;s close its highest since Oct. 14.

Both contracts are on track for their second weekly increase after investors returned from holidays, improving trade liquidity.

Factory activity in Asia, Europe and the U.S. ended 2024 on a soft note as expectations for the New Year soured due to growing trade risks from Donald Trump39;s impending return to the U.S. presidency and China39;s fragile economic recovery.

The December PMIs for Asia were a mixed bag, but we continue to expect manufacturing activity and GDP growth in the region to remain subdued in the near term, Capital Economics analysts said in a note, referring to purchasing managers39; indexes data published on Thursday.

With growth set to struggle and inflation below target in most countries, we think central banks in Asia will continue to loosen policy.

Lower interest rates should spur more economic…