Oil prices rose yesterday after China’s central bank cut its borrowing rates, boosting hopes for stronger demand from the world’s top energy consumer.

A signal from European Central Bank President Mario Draghi on Thursday that new eurozone initiatives could be unveiled as soon as December to stoke the economy has added further tailwind.

Benchmark Brent crude oil rose 47 cents to $48.55 a barrel by 1130 GMT, but was still on course for a weekly decline of more than 3.5 per cent on ongoing supply concerns.

US crude for December was down 30 cents at $45.68 a barrel, on course for a three per cent weekly decline.

“The rate cut does give some support to demand expectations, so oil’s gone a bit higher and it’s a little bit positive for the moment,” said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam.

The ECB’s stimulus plans offered further support, van Cleef said.

US oil inventories climbed by a larger-than-expected eight million barrels to 476.6 million last week, helping to fuel concern over global over-supply.