* China stock markets rebound after support measures
* German exports surge
* Oil glut continues to weigh on prices (Updates prices, adds latest on Iran in paragraph)
By Christopher Johnson and Libby George
LONDON, July 9 (Reuters) - Brent crude rose more than $2 to $59 a barrel on Thursday as supportive economic data from Germany, firmer stock markets and strong gasoline demand lifted oil prices.
Brent is still down more than 7 percent this month, however, on worries about the Greek economy, growing U.S. oil stocks and advancing talks between Iran and world powers that could lead to sanctions relief for its oil exports. ID:nL1N0ZP0AE
Brent crude LCOc1 was $2.03 higher at $59.08 a barrel and front-month U.S. crude futures CLc1 were up $1.51 at $53.16 by 1342 GMT. U.S. crude has fallen more than 10 percent in July.
Some doubts about prospects for an imminent deal with Iran also helped to lift prices, as an Iranian official said it would be unlikely a deal would be done on Thursday. ID:nL1N0ZP0SL
The appetite for riskier assets such as oil was also buoyed after Chinese stock markets rebounded 6 percent, helped by Beijing's frantic attempts to arrest a sell-off that has roiled global financial markets. ID:nZZN2RHV00
"It is a combination of rising stock markets and doubts over a nuclear deal with Iran that push prices up today," Carsten Fritsch, commodities analyst at Commerzbank in Frankfurt, said.
There is also support from strong consumer demand for gasoline that is encouraging refineries to process as much crude as they can, helping to underpin prices.
In Germany, data showed exports rose at their fastest pace this year in May, boosting expectations that Europe's largest economy would show stronger growth in the second quarter after expanding modestly in the first. ID:nL8N0ZO3O0
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."
"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."
A surprise increase in U.S. 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. ID:nL8N0ZO11R