UPDATE 10-Oil rises on U.S. stimulus hopes, tighter market under Biden

* Biden set to rejoin Paris climate accord
* 'Act big' now to save economy, Yellen says
* U.S. crude, fuel stocks rise in most recent week -API
* Beijing steps up COVID-19 measures

(Updates with industry group U.S. crude inventory data)
By Laila Kearney
NEW YORK, Jan 20 (Reuters) - Oil edged higher on Wednesday
on expectations that U.S. President Joe Biden's administration
will deliver hefty pandemic-related economic stimulus that will
lift fuel demand and enact policies that will tighten crude
supply.
Biden, who was inaugurated on Wednesday, was set to take
immediate measures to curb the U.S. oil industry, including a
plan to re-enter the Paris climate accord, cancelling a permit
for the Keystone XL crude oil pipeline and pausing planned
drilling in the Arctic. Brent crude LCOc1 settled at $56.08 a barrel, gaining 18
cents. U.S. West Texas Intermediate (WTI) crude CLc1 settled
at $53.24 a barrel, climbing 26 cents.
Prices, however, turned negative in post-settlement trade
after data by industry group the American Petroleum Institute
showed U.S. crude oil stocks unexpectedly rose last week,
swelling by 2.6 million barrels to about 487.1 million barrels.
API/S
Weekly government figures are being released on Friday.
EIA/S
U.S. Treasury Secretary nominee Janet Yellen on Tuesday
urged lawmakers to "act big" on pandemic relief spending, which
boosted oil prices earlier in the session.
"There's renewed hopes about the stimulus - there's just a
good mood in the markets overall, a sense of moving forward and
that demand is going to be picking up," said John Kilduff,
partner at Again Capital LLC in New York.
Globally, supplies have tightened from a record output cut
last year by OPEC and its allies, a group known as OPEC+,
helping lift prices from historic lows.
This month, Brent hit an 11-month high of $57.42, helped by
Saudi Arabia pledging to make additional, voluntary cuts and
most OPEC+ members agreeing to keep output steady in February.
The expected moves to push for carbon reduction, if they
restrict supply, could also boost prices.
"I think the Biden administration on day one is making it
clear that there's a new sheriff in town and we're going to go
back to policies that are pro-green energy and anti-fossil
fuels," said Phil Flynn, senior analyst at Price Futures Group
in Chicago. "It's going to mean higher prices and the market is
starting to price in that reality."