Oil prices rose Monday, August 28, in line with stock markets rally, after China took steps to support its ailing economy, although investors remain concerned about the pace of growth as well as rising US interest rates which could dampen demand for fuel.

And by 00:49 GMT, Brent crude rose 22 cents, or 0.3%, to $ 84.70 a barrel, while US West Texas Intermediate crude recorded $ 80.08 a barrel, up 25 cents, or 0.3%.

Oil benefited from positive signs at the opening, said Tony Sycamore, an analyst at IG Markets, after China halved stamp duties on stock trading from Monday in its latest attempt to boost battered markets.

Unfortunately after last week's modest interest rate cut (by the central bank of China), the above announcements are yet another piecemeal measure that will not change investors' pessimism towards China, he added.

Sycamore said that China's manufacturing PMI due later this week will likely reveal more grim economic news regarding the world's second-largest economy. He added that the PMI is likely to remain in contraction territory for the fifth month in a row.

Tina Teng, an analyst at CMC Markets, said that the scenario of a soft landing for the US economy strengthened the energy markets today, Monday, despite the US Federal Reserve's insistence on continuing to raise interest rates.

Brent and WTI recorded losses for the second week on Friday, after US Federal Reserve Chairman Jerome Powell said that the US central bank may need to raise interest rates further to calm inflation, which is still very high.

However, oil prices remained above $80 a barrel supported by lower oil inventories and supply cuts from the OPEC+ group of oil producers.