Oil prices stabilised after China’s move to support the economy

Oil prices were little changed on Monday after China took steps to support its ailing economy, although investors remained concerned about the pace of growth as well as possible new hikes in US interest rates that could dampen demand for oil.

China has halved the stamp duty on stock trading in its latest attempt to shore up troubled markets. The markets are also focusing on Tropical Storm Idalia and the risks it poses to oil and gas production in the US Gulf Coast.

And by 1045 GMT, Brent crude fell 15 cents, or 0.2 percent, to $ 84.33 a barrel, while US West Texas Intermediate crude was $ 79.88 a barrel, up five cents.

Brent and West Texas Intermediate crude recorded a loss for the second week on Friday, after Federal Reserve Chairman Jerome Powell said that the US central bank may need more interest rate hikes to calm inflation, which is still very high.

CMC Markets analyst Tina Teng said the scenario of a moderate slowdown in the US economy boosted energy markets on Monday despite the Federal Reserve’s insistence on continuing to raise interest rates.

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

Analysts told Reuters last week that Saudi Arabia is expected to extend a voluntary cut of one million barrels per day in production to include the month of October as the kingdom seeks to provide more support to the markets.