Oil prices edged higher on Friday and were on track for weekly gains as cold weather in Europe and the U.S. as well as additional economic stimulus flagged by China helped push prices in the previous session to their highest in more than two months.

Oil futures posted solid gains in a holiday-shortened week, buoyed by expectations of further stimulus in China, the world’s largest crude importer, to boost its sputtering economy.

U.S. crude oil inventories fell by 1.2 million barrels last week, which was less than expected, while stocks of gasoline and distillate fuels saw large builds.

U.S. crude stocks fell while gasoline and distillate inventories rose sharply as demand weakened in the week ending December 27, the Energy Information Administration (EIA) said on Thursday.