UPDATE 7-Oil hits 11-month high near $57 on tight supply expectations

* Saudi plans to cut an extra 1 million bpd in Feb and March
* U.S. crude stockpiles expected to drop for fifth week
* Coming up: API oil supply report, 2130 GMT

(New throughout, updates prices, market activity and comments;
new byline, changes dateline, previous LONDON)
By Laura Sanicola
NEW YORK, Jan 12 (Reuters) - Oil hit an 11-month high just
below $57 a barrel on Tuesday, bolstered by Saudi Arabia's plans
to limit supply, offsetting worries that rising coronavirus
cases globally would curtail fuel demand.
Brent crude LCOc1 was up 90 cents, or 1.6%, at $56.56 a
barrel by 1118 EST (1618 GMT) after touching its highest since
last February at $56.75. U.S. West Texas Intermediate (WTI)
CLc1 gained 82 cents, or 1.6%, to $53.07.
Saudi Arabia plans to cut output by an extra 1 million
barrels per day (bpd) in February and March to keep inventories
in check.
The Saudi cut is part of an OPEC-led deal in which most
producers will hold output steady in February. Last year's
record cuts from OPEC and its allies helped oil recover from
historic lows reached in April. Some analysts believe the oil
complex is underestimating supply levels.
"Storage at Cushing is only 10.2 million barrels below the
all-time record high, so there is no problem with supply here in
the U.S., but the complex is responding positively to this
chatter about undersupply," said Bob Yawger, director of energy
futures at Mizuho.
Oil also gained on expectations for a drop in U.S. crude
stockpiles. Analysts expect crude inventories to fall by 2.7
million barrels for a fifth straight week of declines. EIA/S
The first of this week's two supply reports, from the
American Petroleum Institute, is due at 4:30 p.m. EST (2130
GMT).
The market is also being supported by the prospect of
increased economic stimulus in the United States.
President-elect Joe Biden, who takes office on Jan. 20, has
promised "trillions" in extra pandemic-relief spending.
However, oil price gains were capped by demand concerns as
coronavirus cases rise around the world. Chinese authorities introduced new curbs in areas
surrounding Beijing on Tuesday and Japan is to widen a state of
emergency beyond Tokyo.