London - Oil prices diverged Monday as the market assessed fresh stimulus action by China against a background of a US crude supply glut.
US benchmark West Texas Intermediate for May delivery gained 17 cents to $55.91 a barrel.
Brent North Sea crude for June fell 66 cents to stand at $62.79 a barrel in London afternoon deals and after recent strong gains.
China's central bank has cut the reserve requirement ratio (RRR) -- or amount of cash that commercial banks must hold in reserve -- by one percentage point, the second such move this year to boost lending.
The People's Bank of China (PBoC) made the move effective on Monday.
Sucden brokers said investors were mulling "over the effects of the PBoC's decision to cut its reserve".
It added in a note that "market participants anticipate that the move will hopefully free up additional capital, as much as $200 billion, in an effort to stimulate lending but investors remain hesitant to commit to significant positions as market volatility spikes".
AFP
