SINGAPORE, Aug 28 Reuters Oil prices ticked higher on Monday after China took steps to support its flagging economy, though investors remained worried about the pace of growth as well as further U.S. interest rate hikes that could dampen fuel demand.

Brent crude rose 19 cents, or 0.2, to 84.67 a barrel by 0627 GMT, while U.S. West Texas Intermediate crude was at 80.09 a barrel, up 26 cents, or 0.3.

Brent and WTI posted a second week of losses on Friday after Fed Chair Jerome Powell said the U.S. central bank may need to raise rates further to cool stilltoohigh inflation.

Oil benefited from a better tone on the opening, IG market analyst Tony Sycamore said, after China halved stamp duty on stock trading effective Monday in the latest attempt to boost struggling markets. read more

Unfortunately, after last week39;s modest Chinese central bank interest rate cut, the announcements above amount to another piecemeal measure that won39;t alter investor gloom towards China, said Tony Sycamore, a market analyst at IG.

China39;s manufacturing purchasing managers39; index PMI, due later this week, is likely to reveal more dour economic news around the world39;s secondbiggest economy, Sycamore said, adding that the PMI was likely to stay in contraction territory for a fifth consecutive month.

CMC markets analyst Tina Teng said a softlanding scenario for the U.S. economy buoyed energy markets on Monday, despite the Federal Reserve39;s hawkish stance on rate hikes.

In the…