LONDON: World oil prices diverged Tuesday as dealers balanced better-than-expected eurozone economic growth figures and steady US data with ongoing concerns over Greece.
Brent North Sea crude for delivery in June rose 31 cents to $111.88 a barrel in late London deals and one day after striking a four-month low at $110.04.
New York's main contract West Texas Intermediate crude for June was down 32 cents at $94.46 a barrel. The contract had on Monday hit its lowest intra-day level since December 19 at $93.65.
The oil market had been rocked on Monday by eurozone fears arising from the continued political stalemate in Greece and banking woes in Italy and Spain.
"Crude oil prices (in London) rebounded from yesterday's losses and corrected higher this morning, following a better reading in the German GDP figures that boosted market sentiment," said Sucden analyst Myrto Sokou.
"The strong German GDP figures increased risk appetite and spread some optimistic signs across the equity and commodity boards."
Official data showed Tuesday that the export-driven German economy grew 0.5 percent in the first quarter, beating expectations for slender expansion of 0.1 percent.
That followed a 0.2-percent contraction in the final three months of last year, dodging a recession defined as two consecutive quarters of negative growth.
And the eurozone itself also registered zero growth, narrowly avoiding recession after a 0.3-percent contraction in the last quarter of 2011, according to official data from statistics agency Eurostat.
The news helped offset stubborn concern about Greece's eurozone future.
European stock markets fell and the euro slid sharply Tuesday on news that Greece faces new elections after last-ditch talks failed.
Traders fear that a worsening eurozone debt crisis could slash global crude oil demand.
"Investors should remain very cautious as the political and economic conditions in Greece look very fragile as rumours about a possible Greek default dominate the country, especially after the unsuccessful efforts for the country to form a government," added Sokou.
In the United States, the world's biggest oil consumer, official data showed consumer prices held steady in April as energy prices fell for the first time this year.
The Labor Department reported its consumer price index (CPI) was unchanged from March, when it rose 0.3 percent.
Energy prices dropped 1.7 percent from March, led by a sharp 2.6 percent decline in gasoline prices, while food prices rose 0.2 percent.
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