Oil prices were little changed on Friday after closing at their highest in more than two months in the previous session, amid hopes that governments around the world could step up policy support to revive economic growth that would boost fuel demand.

Brent crude futures edged up 1 cent to $75.94 a barrel by 0720 GMT, after settling at their highest since Oct. 25 on Thursday. U.S. West Texas Intermediate crude also rose 1 cent to $73.14 a barrel, with Thursday's settlement the highest since Oct. 14.

Both contracts were on track for a second weekly gain after investors returned from holidays, boosting trading liquidity.

Factory activity in Asia, Europe and the U.S. ended 2024 on a weak note as expectations for the New Year soured on rising trade risks from Donald Trump's return to the U.S. presidency and China's fragile economic recovery.

"December PMIs for Asia were mixed, 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 managers' index data published on Thursday.

"With growth expected to be difficult and inflation below target in most countries, we think central banks in Asia will continue to ease policy."

Lower interest rates would spur greater economic growth and would likely lead to higher fuel consumption.

Investors are eyeing further interest rate cuts by the Federal Reserve this year to support the U.S. economy, while Chinese President Xi Jinping has promised more proactive policies to boost growth.

Source: Investing.com