Oil steady as Europe optimism offsets supply glut, strong dollar

Oil prices remained flat on Tuesday as strong European economic data and optimism a deal will be struck between Greece and its creditors offset the impact of a supply glut and a stronger dollar.

Prices recovered after falling earlier in the session, moving into positive territory as European shares climbed to a three-week high on expectations of a Greek deal.

Brent crude was 1 cent higher at $63.35 a barrel at 6.44 a.m. EDT, after closing the previous session up 32 cents.

U.S. crude for August delivery fell 27 cents to $60.11 a barrel. The July contract, which expired on Monday, closed up 7 cents at $59.68 a barrel.

Strong European economic data supported prices despite a heavy global surplus of oil that has led to millions of barrels being afloat at sea as sellers struggle to find buyers for cargoes.

France’s manufacturing sector expanded in June for the first time since April 2014, while Germany’s private sector grew at a faster rate in June than in the previous month.

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