Oil rises as hedge centers and the trade war between America and China hold back gains

SINGAPORE (Reuters) – Oil prices rose by more than 1 percent on Tuesday, as price-hitting traders once again bought for-profit contracts after crude oil fell in the last three sessions due to the rise of trade tensions between China and the United States.

Brent prices fell by more than 8% in all three sessions, compared to the closing level on July 31, as US President Donald Trump promised new tariffs on Chinese imports and China taking new measures against US agricultural imports.

The United States also reacted Monday to the depreciation of the Chinese yuan by calling Beijing a currency manipulator on Tuesday.

Brent fell more than 3% on Monday, as traders worry that lingering tensions between the world's two biggest oil buyers will negatively affect demand, boosting city center coverage on Tuesday.

Tuesday at 5:44 GMT, Brent crude futures were up 61 cents, or 1%, to $ 60.42 a barrel, after falling to $ 59.07, its lowest level since January 14th.

Futures contracts for basic crude in the western US Texas rose 56 cents, or 1%, to $ 55.25 a barrel.

The United States accuses Beijing of manipulating its currency after China has let the yuan fall to its lowest level in more than a decade. The weak yuan will boost Chinese exports by lowering its prices, but will also increase the cost of oil imports for the world's largest crude importer.

Oil prices may receive some support later this week, after a preliminary poll by Reuters that showed crude oil inventories in the United States are expected to decline for the eighth week in a row.

(Reuters)