WASHINGTON (dpa-AFX) - Oil prices recovered slightly on Tuesday after China moved to stabilize the yuan's slide, helping ease concerns over a currency war.
Benchmark Brent crude rose by 10 cents, or 0.2 percent, to $59.91 a barrel, after earlier dipping to $59.07, their lowest level since Jan. 14.
West Texas Intermediate (WTI) crude futures were up by 26 cents, or half a percent, at $54.97 per barrel on the back of short covering.
The upside remained limited amid concerns the ongoing trade dispute between the world's two biggest oil buyers will dent demand.
The U.S. has labeled China a currency manipulator, in a move that opens to possible additional sanctions. A weaker yuan makes Chinese exports inexpensive, giving it an edge over competitors.
The U.S. will now ask the International Monetary Fund to 'eliminate the unfair competitive advantage created by China's latest actions'.
China, meanwhile, halted purchases of U.S. farm goods and indicated it may slap tariffs on U.S. farm goods purchased after Aug. 3.
Geopolitical tensions also remain in focus, with Iran saying it would no longer tolerate 'maritime offences' in the Strait of Hormuz.
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