09:09 AM EDT, 10/21/2024 (MT Newswires) -- Oil prices rose early on Monday after China lowered interest rates as the No.1 oil importer looks to stimulate its flagging economy.

West Texas Intermediate crude for November delivery was last seen up US$1.45 to US$70.67 per barrel, while December Brent crude, the global benchmark, was up US$1.31 to US$74.37.

The rise comes as The People's Bank of China on Monday lowered its benchmark interest rate to 3.1% from 3.35%, according to the Financial Times, as the country attempts to reach its 5% target for GDP growth this year after last week reporting 4.6% growth for the third quarter.

The rate cut is China's latest attempt to boost an economy weighted down by a debt crisis in its key real-estate sector, weak consumer spending and rising unemployment . The country's oil demand, which rose by one-million barrels per day in 2023, is expected to rise by just 0.1-million bpd this year and 0.3-million bpd in 2025, according to the Energy Information Administration, on a weakening economy and a transition to renewable energy.

"As much as oil watchers still suffering from a bullish bent are pleased to see something of a rekindling in the idea of a change of China's fortunes due to stimulus and the like, there remain warnings of a fall from grace for Heating Oil, Gasoil and Diesel," PVM Oil Associates noted.

Still, China's measures are offering support for oil after West Texas Intermediate prices fell by 8% last week amid easing worries Israel will strike at Iran's energy infrastructure as it continues to weigh its response to that country's Oct.1 missile attack. Demand remains light and OPEC+ is poised to begin adding 180,000 bpd to the market monthly beginning in December as its unwinds 2.2-million bpd of voluntary production cuts.