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 Brent crude oil is still down about 8 percent this month, however,
thanks to worries about the Greek economy, growing U.S. oil stocks
and advancing talks between Iran and world powers that could lead to
sanctions relief for its oil exports.
Front-month U.S. crude futures were up $1.07 at $52.72 a barrel by
1115 GMT (7:15 a.m. EDT). U.S. crude fell about 11 percent in July.
Brent crude was $1.37 higher at $58.42 a barrel.
"Brent has found some bottom," said Olivier Jakob, managing director
of PetroMatrix. "As long as gasoline is holding strong, it's hard
for crude oil to have another sell-off without some news from Iran."
Strong demand worldwide for the motor fuel is encouraging refineries
to process as much crude as they can, helping to underpin prices.
In Germany, data from the Federal Statistics Office showed exports
rose at the their fastest pace this year in May, boosting
expectations that Europe's largest economy would pull off stronger
growth in the second quarter after expanding modestly in the first.
Chinese government action also helped stocks to rally on Thursday,
assuaging concerns over the economy of the world's largest energy
consumer for now.
In Beijing's most drastic step yet to stem a sell-off that has
roiled global financial markets, China's securities regulator banned
selling by shareholders with large stakes in listed companies.
Traders said the downward momentum in oil had been broken by two
days of gains and sentiment was more positive on Thursday.
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"Supports held after the sharp sell-off on Monday, and these
supports were not seriously tested yesterday," said Tamas Varga, oil
analyst at London brokerage PVM Oil Associates. "This, however, does
not mean that bears threw the towel in."
World powers were close to a deal on Thursday that could lead to a
lifting of western sanctions against Iran, though negotiators
remained deadlocked on the issue of arms and missile trade.
"Oil is being pressured on multiple fronts, and China's equity
wobble, the prospect of Iran's re-entry to the market and low
liquidity all add up to an extremely fraught environment," said
Varga.
A surprise increase in U.S. oil stockpiles despite the American
driving season also added to global oversupply with the Organization
of the Petroleum Exporting Countries and Russia producing at
near-record levels.
(Additional reporting by Simon Falush; editing by David Goodman and
David Clarke)
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