Oil Flat After Stronger European PMI and Greek Hope

Oil prices was flat on Tuesday as stronger 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 2 cents lower at $63.32 a barrel at 8.04 a.m. EDT, after closing the previous session up 32 cents.

U.S. crude for August delivery fell 35 cents to $60.03 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.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza