Oil price slight rise following strong European economic data

22 June 2015 (Last Updated June 22nd, 2015 18:30)

Oil prices have experienced a slight rise due to strong European economic data easing oversupply concerns.

Oil prices have experienced a slight rise due to strong European economic data easing oversupply concerns.

The promising deal on Greece also supported the prices.

Brent crude prices edged up 10 cents to $63.44, while US crude contracts ending on Monday rose 7 cents ending at $59.68 a barrel. However, US crude futures for August dropped 14 cents to $60.24 a barrel, reported Reuters.

Positive expectations on a Greek deal also led to a recovery in oil prices, after posting losses in earlier sessions.

"The data from France and Germany show there are flickers of life in the European economy, but strong supply is likely for some time to come, meaning subdued oil prices."

In addition, the manufacturing sector in France expanded in June for the first time since April 2014, while the private sector in Germany increased at a faster pace during the month compared to May.

CMC Markets chief market analyst Michael Hewson told news agency: "The data from France and Germany show there are flickers of life in the European economy, but strong supply is likely for some time to come, meaning subdued oil prices."

Oil prices also gained over expectations for a weekly drawdown of crude stocks in the US.

According to analysts expectations, last week witnessed a declined in the US commercial crude oil stocks by an average of 1.8 million barrels to around 466 million barrels.

Data on the US stocks is likely to be released by the American Petroleum Institute on Tuesday, while the inventories data is expected to be published by the US Government's Energy Information Administration on Wednesday.

Prices could be under strain, as Iran is expected to increase exports of oil in case an agreement between Tehran and six world powers over country's nuclear programme.

The move is expected to lift Western sanctions.