Oil Markets Soft; Greece, Iran Uncertainty Eyed

New York: Brent futures were little changed on Friday while US crude prices fell slightly as Greece's debt drama and Iran's bid to seal a nuclear deal by the month end led to uncertainties in oil markets.

Traders and investors were looking out for the latest weekly reading on the US oil rig count data released at 1700 GMT (10:30 p.m. in India) that will serve as a measure for domestic oil output.

"The fear of the unknown is greater than ever today, with Greece and Iran topping the table with uncertainties, and that's why you have prices that are all over the place," said Phillip Streible, senior market strategist at RJO Futures in Chicago, Illinois.

Brent futures were down 2 cents at $63.18 a barrel by 1615 GMT (9:45 p.m. in India).

US crude slid 25 cents to $59.45.

In refined oil products, gasoline rose 0.7 per cent while ultra-low sulfur diesel gained 0.6 per cent on short-covering after sharp losses in recent sessions.

Greece and its creditors worked on cobbling together a last-minute agreement to avoid a default and keep Athens in the Eurozone. A senior EU official said chances of a Greek debt deal by Saturday was higher than 50 per cent, though the country will probably be in arrears with the International Monetary Fund (IMF) for a few days.

"If there is a resolution to the Greece problems, this market could get a big boost," said Phil Flynn, analyst at the Price Futures Group in Chicago.

In Vienna, major differences remained at talks between Iran and world powers on key issues such as sanctions relief and UN access to Iranian sites ahead of a June 30 deadline for a final nuclear deal, a senior Western diplomat said.