Oil prices fell on Monday but pared losses along with the U.S. stock market as investors bet that China's economic stimulus steps on Sunday would be sufficient to boost the world's No. 2 economy and bolster its crude demand.
Global benchmark Brent crude slid below $83 per barrel early in the session, partly on concerns the U.S.-China trade war could weaken crude demand in China.
But prices bounced off session lows as investors bet that Sunday's move by China's central bank to slash lenders' reserve requirements would spur economic growth, analysts said.
"Every time China cuts interest rates, they increase oil consumption," said Phil Flynn, an analyst at Price Futures Group in Chicago. "Cooler heads are prevailing."