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Oil prices have risen due to seasonal demand in developed economies.

Brent for July delivery LCOc1 increased 95 cents to $63.64 a barrel, while front-month US crude CLc1 rose 73 cents to $58.87 a barrel, Reuters reported.

During the US and European summer months, drivers are set to take to the roads for holidays, which may result in an increase in oil demand.

"Drivers are set to take to the roads for holidays, which may result in an increase in oil demand."

Following disappointing data from China, hopes of more economic stimulus in the country to drive demand also gave a boost to the fuel prices.

In May, the consumer inflation of China fell 1.2% year on year, which is more than expected, and raised concerns about growing deflationary pressures from one of the leading oil consumers.

During last month, Chinese oil imports dropped by 11% compared with in 2014, underlining general weakness in the market.

With Organization of the Petroleum Exporting Countries' (OPEC) decision to retain production volume in its meeting on Friday, while additional supply from Iran and Iraq could add to the already oversupplied market.

Supply lines into the town of Baiji and its nearby oil refinery opened due to government forces in Iraq that are supported by US-led coalition air strikes.

Iran's $2.8bn Siraf oil refinery project is in the process of increasing capacity and is set to attract investment from eight European companies.