By Alex Lawler

LONDON (Reuters) -Oil prices rose almost 1% on Friday and was on target for a weekly gain, spurred by expectations of a stimulus-driven economic recovery in China, the world’s biggest oil importer, and by forecasts of lower U.S. inventories.

Analysts polled by Reuters had expected U.S. crude stocks to have declined by about 1.9 million barrels last week and market sources said the American Petroleum Institute put the decline at 3.2 million barrels.

Brent crude futures were up 60 cents, or 0.8%, at $73.86 a barrel by 1105 GMT. U.S. West Texas Intermediate crude rose 57 cents, or 0.8%, from Thursday’s near $70.19. For the week Brent and WTI were up 1.3% and 1% repectively.

“Probably we’re moving back up again in anticipation of a crude draw within the U.S.,” said UBS analyst Giovanni Staunovo. “Some support for oil might come soon from cold weather supporting demand.”

The U.S. Energy Information Administration’s official weekly inventory report is due at 1 p.m. EST (1800 GMT), later than normal due to Christmas holiday.

Optimism over Chinese economic growth and oil demand was buoyed on Thursday by the World Bank raising its forecast for Chinese economic growth in 2024 and 2025, however it said that subdued household and business confidence would proceed to weigh next yr.

Chinese authorities have agreed to issue special treasury bonds value 3 trillion yuan ($411 billion) next yr, sources told Reuters this week, as Beijing acts to revive the sluggish economy.

Nevertheless, a stronger U.S. dollar capped oil price gains. The U.S. currency has been boosted by expectations that the incoming Donald Trump administration’s policies will boost growth and lift inflation.

A stronger dollar makes oil dearer for buyers holding other currencies.

(Reporting by Alex Lawler and Sudarshan VaradhanEditing by David Goodman)