UPDATE 7-Oil climbs 2% on U.S. stock draw but gains capped as OPEC+ set to ease cuts

* U.S. crude inventories fall 7.5 mln bbls last week - EIA
* OPEC+ set to ease record oil cuts from August
* Moderna Phase 1 results show coronavirus vaccine safe

(Updates with settlement prices)
By Devika Krishna Kumar
NEW YORK, July 15 (Reuters) - Oil prices rose 2% on
Wednesday, supported by a sharp drop in U.S. crude inventories,
but further gains were limited as OPEC and its allies are set to
ease supply curbs from August as the global economy gradually
recovers from the coronavirus pandemic.
Brent crude LCOc1 settled up 89 cents, or 2.1%, at $43.79
a barrel, and U.S. West Texas Intermediate (WTI) crude CLc1
rose 91 cents, or 2.3%, to $41.20 a barrel.
Prices were boosted after data from the Energy Information
Administration showed U.S. crude inventories fell 7.5 million
barrels last week, compared with analysts' expectations in a
Reuters poll for a 2.1 million-barrel drop. EIA/S
"The story of the report is we will see more draws in the
coming weeks," said Phil Flynn, analyst at Price Futures Group.
"We will see tightening of supplies and the market is
signalling that we are going to need more oil pretty soon,
probably by August."
The Organization of the Petroleum Exporting Countries and
its allies, known as OPEC+, have been cutting output since May
by 9.7 million barrels per day (bpd), or 10% of global supply,
after the virus destroyed a third of global demand.
After July, the record cuts are due to taper to 7.7 million
bpd until December. Saudi Arabia's energy minister Prince Abdulaziz bin Salman
said OPEC+ was moving to the next phase of its oil cut pact when
the group is expected to ease their reductions as oil demand
recovers. Russian Energy Minister Alexander Novak said a partial
restoration of production would benefit the market and that
Russia would raise oil output by around 400,000 bpd from August.
"OPEC+ managed to orchestrate the greatest balancing act
ever seen in oil market history. But now, the alliance is ready
to start concluding the show," said Rystad Energy's senior oil
markets analyst Paola Rodriguez-Masiu. "We see the increase in
OPEC+ production boosting crude exports from August onwards as
the alliance gradually reopens the oil taps."
On Tuesday, OPEC said it saw demand recovering by 7 million
bpd in 2021 after falling by 9 million bpd this year. OPEC/M
The global benchmark Brent has recovered to about $43 a
barrel from a 21-year low below $16 in April. The rebound in
prices has allowed some U.S. producers to resume suspended
production, a move that is set to weigh on OPEC's decision on
Wednesday.
Prices were also supported by promising early data for a
potential COVID-19 vaccine, but the resurgence of the
coronavirus in the United States and other countries still kept
traders on edge. "Although the demand for crude has jumped in recent weeks,
rising coronavirus cases in the United States along with some
cities in other major economies reimposing shutdowns have the
potential to hit demand," Lukman Otunuga, senior research
analyst at FXTM.