Oil prices traded lower on concerns over global oil glut. Debt talks between Athens and its creditors also remained in focus.

Athens yesterday failed to reach agreement with its creditors, and it is a step closer to a possible default now. Next round of debt talks is scheduled to be tomorrow.

If a deal is not reached at Saturday's meeting, officials are expected to start preparing a "Plan B" to protect the Eurozone from damaging other countries in the Eurozone.

Analysts said that a Greek default could lead to a decline in demand for oil.

Investors expect the results of talks on the Iranian nuclear program. It is likely that talks will continue as there are doubts that all issues can be resolved before June 30.

Investors are also awaiting the release of the number of the U.S. oil rigs later in the day. Oil production in the U.S. remains at high level despite the falling number of oil rigs.

WTI crude oil for August delivery decreased to $58.76 a barrel on the New York Mercantile Exchange.

Brent crude oil for August rose to $62.85 a barrel on ICE Futures Europe.