Oil Steadies as China’s Yuan Fix Alleviates Trade War Tensions - Bloomberg

Oil Steadies as China’s Yuan Fix Alleviates Trade War Tensions - Bloomberg:

Oil steadied as China moved to stabilize the yuan, cooling some concerns about an escalation in the standoff with the U.S., which labeled the Asian nation a currency manipulator.

Futures were 1% higher in New York as the People’s Bank of China on Tuesday set the daily currency fixing stronger than analysts expected. Crude had slumped as much as 1.8% earlier after comments by the U.S. Treasury Department sowed fears that the clash between the two biggest economies was about to inflict an even deeper toll on economic growth and oil demand.

West Texas Intermediate oil for September delivery rose 55 cents to $55.24 a barrel on the New York Mercantile Exchange as of 8:19 a.m. local time. The contract fell 1.7% on Monday.

Brent for October settlement added 42 cents, or 0.7%, to $60.23 a barrel on the London-based ICE Futures Europe Exchange. It slumped 3.4% on Monday to the lowest level since mid-January. The contract traded at a premium of $5.07 to WTI for the same month.