SINGAPORE (Reuters) -Oil prices were little changed on Thursday after falling in the previous session, as signs of firmer fuel demand and falling inventories in the U.S., the world's top crude oil consumer, outweighed worries over global demand prospects.

Brent crude futures were up 6 cents, or 0.08%, to $73.52 a barrel, while U.S. West Texas Intermediate crude rose 2 cents, or 0.03%, to $69.71 per barrel as of 0345 GMT.

Oil prices slumped over 2% on Wednesday as worries over supply disruptions in Libya eased and demand concerns continued despite China's latest stimulus plans. Oil prices initially rose following the stimulus announcement from the world's biggest oil importer.

"With regards to China, on top of this week's easing measures announced on Tuesday, fiscal stimulus is likely required to boost household consumption, and to reignite flagging animal spirits," said Tony Sycamore, market analyst at IG.

Signs of the return of Libyan oil to the market are also weighing on prices, after delegates from divided Libya's east and west have agreed on the process of appointing a central bank's governor, a step which could help resolve the crisis over control of the country's oil revenue that has disrupted exports.

The market shrugged off data that showed stronger demand in the United States, ANZ Research said in a note, as the Energy Information Administration (EIA) reported that U.S. oil inventories fell more-than-expected across the board last week.

"Any revival in Libyan production would return to a market that is already beset by concerns of weak demand in the U.S. and China," ANZ said.

Still, gasoline demand on a weekly product supplied basis climbed to over 9 million barrels per day (bpd) last week, the EIA data showed, while distillate fuel supplied to the market rose to over 4 million bpd. [EIA/S]

For the rest of the week, IG's Sycamore expects markets to focus on month-end positioning.

"Then it's all about next Friday's nonfarm payrolls, given the soft consumer confidence numbers earlier in the week, with a wary eye watching events in the Middle East," he said.

U.S. consumer confidence dropped by the most in three years in September amid mounting fears over the labour market, a survey showed on Tuesday.

The U.S. nonfarm payrolls report is due on Oct. 4.

The U.S., France and several allies called for an immediate 21-day ceasefire across the Israel-Lebanon border while also expressing support for a ceasefire in Gaza following intense discussions at the United Nations.

Israel widened its airstrikes in Lebanon on Wednesday, killing at least 72 people, according to a Reuters compilation of Lebanese health ministry statements.

Israel's military chief said a ground assault was possible, raising fears the conflict could spark a wider war in the key Middle East oil producing region.