UPDATE 6-Oil rises 2% as U.S. inventories fall and demand picks up

* Another 2.3 mln-bbl Cushing weekly draw expected - trade
* U.S. Northeast pummeled by one of worst winter storms in
years
* Goldman Sachs sees oil price rising to $65 by July
* OPEC oil output rose in January, but less than forecast

(Updates market activity; adds commentary; changes byline,
dateline, previous LONDON)
By Laura Sanicola
NEW YORK, Feb 1 (Reuters) - Oil prices rose more than 2% on
Monday, buoyed by falling U.S. crude inventories and rising
winter fuel demand as a one of the worst snowstorms in years
hits the U.S. Northeast.
Brent crude LCOc1 was up $1.22 cents, or 2.2%, at $56.26 a
barrel by 1:26 p.m. EST (1826 GMT). U.S. crude CLc1 gained
$1.20 cents, or 2.3%, to $53.40. Both benchmarks gained nearly
8% in January.
U.S. government data last week showed a 2.3 million-barrel
drawdown in stocks at the Cushing, Oklahoma, delivery hub for
crude futures. Another 2.3 million-barrel weekly decline is
expected since then, analysts and traders said citing a Wood
Mackenzie report.
"Crude is being supported by many small factors this week -
expected drawdowns in Cushing, a sudden rise in winter fuel
demand amid colder weather, and further talks on Capitol Hill
about stimulus checks," said John Kilduff, partner at Again
Capital LLC in New York.
The U.S. Northeast has been hit by a powerful winter snow
storm, pummeling a vast swath stretching from Pennsylvania
through New England, causing widespread disruption in New York
City and other major urban centers in the region. Goldman Sachs said prices could rise to $65 by July,
forecasting an oil market deficit of 900,000 barrels per day
(bpd) in the first half of 2021, a higher level than its
previous prediction of 500,000 bpd. OPEC oil output rose for a seventh month in January, a
Reuters survey found, after the group and its allies agreed to
ease supply curbs further, although the production growth was
smaller than expected. Russian oil and gas condensate production also increased in
January, two sources told Reuters on Monday, but the increase
was in line with expectations, following Moscow's deal with OPEC
on output cuts. U.S. oil and gas drillers are gearing up for a pick-up in
demand. As higher prices make new wells profitable again, they
added rigs for a sixth month in a row in January. RIG/U
U.S. production data from the Energy Information
Administration showed output rose above 11 million bpd in
November, the first time it has exceeded that figure since
April.


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CHART: U.S. oil may retest support at $51.68 Brent oil may fall to $54.35 and U.S. oil production https://tmsnrt.rs/3ckg2Bw
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