Oil prices ended slightly higher as optimism over strong European economic data and confidence that Greece would reach a bailout deal with its international creditors offset the impact of a robust dollar and the supply glut.
Light sweet crude for July delivery, the US benchmark, ended marginally higher by 7 cents or 0.1% at $59.68 a barrel on the New York Mercantile Exchange.
The July front month contract expired at the end of trading Monday with the most actively traded August contract ending 40 cents or 0.7% higher at $60.38 a barrel.
Brent futures, the global benchmark, ended 32 cents or 0.5% higher at $63.34 a barrel on the London based ICE futures exchange.
Athens pitched last ditch reform proposals to its international creditors on Monday increasing optimism that the proposal would be a basis for a potential bailout deal.
Also adding to the positive market sentiment was support for the prices from positive economic data from European countries.
France reported that its manufacturing sector expanded in June for the first time in more than one year while Germany’s private sector reported a faster growth in June that the previous months and on a year on year basis.
“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,” Michael Hewson, chief market analyst at CMC Markets, told Reuters.
The rally was however capped by a robust dollar with the Wall Street Journal dollar index, which tracks the dollar against a basket of foreign currencies, adding 0.9%.
A stronger dollar is bearish for the demand of commodities denominated in dollars like oil as it makes them harder to afford to holders of foreign currencies.
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