Oil prices hovered at their highest since October on Monday as investors eyed the impact on global fuel demand from colder weather in the Northern Hemisphere and Beijing's economic stimulus measures.

China's fiscal stimulus has provided some upward momentum for oil market, but questions still remain over the longevity of this movement.

Oil prices edged lower in early trade but are off to a strong start of the year, supported by hopes over Chinese stimulus and prospects of higher fuel demand due to colder weather. Brent crude and WTI both fell 0.

Oil prices edged higher on Thursday in thin holiday trading, driven by hopes for additional fiscal stimulus in China, the world's biggest oil importer, while an anticipated decline in U.S. crude inventories also provided support.