World oil prices rebounded Monday after China's latest stimulus move boosted hopes of strengthening demand in the key energy consumer.

Around 1700 GMT, the US benchmark West Texas Intermediate (WTI) for delivery in April rose 78 cents at $33.56 per barrel.

In London, Brent North Sea crude for April advanced 96 cents to $36.06 compared with Friday's close.

China's central bank on Monday cut the proportion of funds banks must set aside as reserves, in Beijing's latest attempt to tackle slowing growth in the world's second largest economy.

The People's Bank of China said it would trim the so-called "reserve requirement ratio" (RRR) for financial institutions by 0.50 percentage points, freeing up more funds for them to lend.

"The price of oil reversed early losses to gain as much as 2.0 percent after China announced a cut to bank reserve ratio requirements," said CMC Markets analyst Jasper Lawler.

"Credit expansion in China has been ramping up in recent months so the cut to the RRR would suggest that authorities are comfortable with it expanding even further.

"Credit expansion is not a long term solution to China's growth slowdown but would likely support growth this year -- and remove some of the concern that has been driving oil prices lower."

Beijing's move came immediately after a G20 finance ministers' meeting in Shanghai, which stressed the use of all available policy tools to boost global growth, and with Chinese and world stock markets assailed by worries over the economy.

Crude futures had risen in earlier Asian trading on Monday, boosted also by hopes that strengthening growth in top oil consumer the United States will soak up some of the chronic supply glut.

However, oil prices have slumped by about 70 percent from a mid-2014 high over concerns of a lasting surplus of supplies, at a time when global economic growth is faltering.

Oil had rallied sharply last week on hopes that top producers will cut output.

Saudi Arabia, as well as Qatar and Russia, recently announced a preliminary deal to freeze output at January levels, should other major producers followed suit.

But Saudi Arabia, OPEC's largest oil producer, has since ruled out a production cut and Iran has dismissed joining a freeze.

burs-rfj/cw