Crude oil rose more than $1 to above $58 on Thursday as supportive economic data from Germany and gasoline demand lifted prices.

Brent crude oil is still down about 8 per cent this month, however, thanks to worries about the Greek economy, growing US oil stocks and advancing talks between Iran and world powers that could lead to sanctions relief for its oil exports.

Front-month US crude futures were up $1.07 at $52.72 a barrel by 1115 GMT. US crude fell about 11 per cent 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.

"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 US 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. – Reuters