UPDATE 8-Oil up after Saudis pledge deeper output cuts beyond June

* OPEC+ wants to maintain oil output cuts beyond June
-sources
* Saudis to cut an extra 1 million bpd in June
* Demand outlook unclear amid fears of second virus wave
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser.

(New throughout; updates prices, market activity and comments;
changes byline and dateline, previous LONDON)
By Laila Kearney
NEW YORK, May 12 (Reuters) - Oil prices rose on Tuesday
after an unexpected commitment from Saudi Arabia to deepen
production cuts in June and on indications that the producer
group known as OPEC+ wants to maintain existing curbs for longer
than expected.
Brent crude LCOc1 advanced 44 cents, or 1.5%, to $30.07 by
11:17 a.m. EDT (1517 GMT), while U.S. West Texas Intermediate
(WTI) crude CLc1 was up $1.40, or 5.8%, at $25.54.
Saudi Arabia said on Monday it would add to existing cuts by
reducing output another 1 million barrels per day (bpd) next
month, slashing total production to 7.5 million bpd, or down
nearly 40% from April. Four sources told Reuters on Tuesday that OPEC and its
allies want to maintain existing oil cuts beyond June, when the
OPEC+ group is next due to meet to shore up prices and demand.
OPEC+ agreed in April to cut output by 9.7 million bpd for
May and June, a record reduction. While producers will slowly
relax curbs after June, supply reductions will remain to April
2022.
"The ministers want to keep the same oil production cuts
now, which are about 10 million bpd, after June," one OPEC+
source told Reuters. "They don't want to reduce the size of the
cuts."
The United Arab Emirates and Kuwait also committed to slash
an extra 180,000 bpd in total, adding to reductions the
producers agreed to under a deal between OPEC, Russia and other
nations, a group known as OPEC+. Kazakhstan has ordered producers in large and mid-sized oil
fields to cut output by about 22% in May to June, in line with
the OPEC+ deal. "Prices have recently been boosted not only by hopes that
demand will soon return, but also by massive voluntary and
involuntary production cuts," Commerzbank said in a note.
"The coordinated action by the Gulf states, with a total
production capacity of around 20 million barrels per day, is
likely to increase confidence among market participants."
U.S. crude producing states have also logged a decline in
output cuts, as collapsing prices prompted independent and
integrated producers to cut operations. U.S. crude futures have
lost roughly 60% so far this year.
U.S. crude inventory reports from the American Petroleum
Institute industry group are due on Tuesday and the U.S. Energy
Information Administration on Wednesday. Output cuts should ease pressure on crude storage capacity,
along with the easing of lockdowns in some countries that has
helped lift fuel demand. But new coronavirus outbreaks in China
and South Korea have revived concerns.
Data showing China's April factory prices fell at the
sharpest rate in four years added to investor jitters.
President Donald Trump praised Saudi Arabia's decision to
curb its oil output. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
FACTBOX-Latest on the coronavirus spread of the coronavirus
around world cut output as virus hits fuel demand, oil
prices fall ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>