Oil prices rise, escalating US-China trade war caps gains

  • 06/08/2019
Oil prices rise, escalating US-China trade war caps gains

Brent crude increased on Tuesday after decreasing to its minimal level since January, as traders bidding on decreasing prices returned contracts to take earnings as a result of the recent decline.

Brent prices have fallen 7.6% after they closed July 31, the day before U.S. President Donald Trump promised to introduce new tariffs on Chinese imports, prompting China to take revenge for imports from the USA.

Brent decreased over 3% on Monday, as traders are troubled about the currently happening trade war among the world's two leading oil buyers, which will hold back demand.

Brent crude futures rose 47 cents, or 0.8%, to $ 60.28 a barrel from 0351 GMT after they had previously fallen to $ 59.07, the minimal since January 14.

Futures for West Texas Intermediate (WTI) crude oil increased 47 cents, or 0.9%, to $ 55.16 per barrel.

The United States blamed Beijing for manipulating its currency since China allowed the yuan to decrease to its minimal point in over a decade. The fall of the yuan will support Chinese exports, making it cheaper, but will increase the cost of oil imports, which is estimated in dollars. China is the largest oil importer in the world.

Analysts say fears that the trade conflict has entered a phase of revengeful actions are aggravating sentiment in the oil market, which currently has less attention to tensions in the Middle East.

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