LONDON (Reuters) -Oil prices were little changed on Friday and poised for weekly gains after closing at their highest in more than two months in the previous session, underpinned by expectations of further economic stimulus in China and lower U.S. interest rates.

Brent crude futures were down 7 cents at $75.86 a barrel by 0900 GMT after settling at the highest level since Oct. 25 on Thursday. U.S. West Texas Intermediate crude dipped by 6 cents to $73.07, with Thursday's close its highest since Oct. 14.

Brent was on track for a 2.2% weekly gain while WTI was set for a 3.5% increase.

Signs of Chinese economic fragility heightened expectations of policy measures to boost growth in the world's top oil importer.

"As China's economic trajectory is poised to play a pivotal role in 2025, hopes are pinned on government stimulus measures to drive increased consumption and bolster oil demand growth in the months ahead," said StoneX analyst Alex Hodes.

China raised wages for government workers in a surprise one-off move that would inject up to $20 billion into the economy.

Investors are also watching for further interest rate cuts by the Federal Reserve this year to support the U.S. economy.

Lower rates can boost economic growth and demand for oil, with lower borrowing costs also helping to boost consumption.

In the U.S., the world's biggest oil consumer, crude stockpiles fell less than expected last week, dropping by 1.2 million barrels to 415.6 million barrels. Analysts had expected a draw of 2.8 million barrels.

U.S. gasoline and distillate inventories jumped last week as refineries ramped up output, though fuel demand hit a two-year low.

Traders are also following recent weather forecasts and the likelihood of a cold snap in the U.S. and Europe that could boost demand for diesel for heating in the coming weeks.