UPDATE 9-Oil firms, ends with weekly gain, as OPEC+ begins record cuts

* After 3 weeks of losses, Brent rises 23% and WTI gains 17%
* OPEC-led oil supply cuts start on May 1
* OPEC April oil output hits 13-month high before new cut
deal
* U.S. energy firms cut oil rigs for a seventh week in a row
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates to settlement)
By Devika Krishna Kumar
NEW YORK, May 1 (Reuters) - U.S. oil prices were 5% higher
while Brent crude rose above $26 per barrel on Friday, with both
benchmarks posting their first weekly gain in four weeks as OPEC
and its allies embark on record output cuts to tackle a supply
glut due to the coronavirus crisis.
In April, U.S. crude fell to an all-time low and traded
negative for the first time on record while Brent hit a
near-21-year low as the pandemic eroded demand and OPEC and
other producers ramped up production before reaching the new
supply deal that kicked in on Friday.
Brent futures LCOc1 for July eased 4 cents, or 0.2%, to
settle at $26.44 per barrel. The June contract expired on
Thursday at $25.27.
U.S. West Texas Intermediate crude (WTI) CLc1 ended the
session 94 cents, or 5% higher, at $19.78 after climbing above
$20 earlier in the session.
After three consecutive weeks of losses, Brent crude notched
a gain of about 23% while WTI increased about 17%.
WTI also found support after U.S. energy firms cut oil rigs
for a seventh week in a row, bringing the total count down to
325, the lowest since June 2016, energy services firm Baker
Hughes Co BKR.N said. RIG/U
The Organization of the Petroleum Exporting Countries,
Russia and other producers, known as OPEC+, have agreed to cut
output by 9.7 million barrels per day from May 1.
Several countries and regions, including China's central
province of Hubei, where the novel coronavirus behind the
pandemic was first detected, are relaxing lockdowns put in place
to contain the virus. "Global petroleum stock builds likely peaked in April as oil
demand contracted by nearly 25 million bpd year-over-year,"
according to a BofA Global Research report.
"Now, countries are emerging from lockdown, boosting demand
just when OPEC+ cuts are kicking in and producers elsewhere are
cutting output."
Even so, there are doubts the production reduction, the
largest ever agreed, will be enough as demand is unlikely to
recover rapidly.
"The production cuts are finally kicking in," said Craig
Erlam, analyst at brokerage OANDA. "Prices are still extremely
low though and the next two weeks will likely see extreme
volatility return."
A Reuters survey on Thursday showed that in advance of the
new output cut, OPEC sharply raised production to the highest
since March 2019, adding to the excess supply already in the
market. OPEC/O
"The demand recovery will be a muted affair," said Stephen
Brennock of oil broker PVM. "What's more, OPEC+ curbs which take
effect today will be no panacea for the hefty supply imbalance."
Underlining the difficulties some producers will face in
meeting their commitments, industry sources said Iraq would
struggle to meet its quota of cutting output by nearly a
quarter. Iraq is OPEC's second-largest producer.
Also supporting oil prices, the U.S. Energy Information
Administration said on Wednesday crude inventories rose by 9
million barrels last week, less than the 10.6 million-barrel
rise analysts had forecast. EIA/S
"This is a second straight week of inventory and product
demand figures suggesting a bottoming of the U.S. market," said
Stephen Innes, chief market strategist at AxiCorp.

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FACTBOX-Oil analysts cut outlook for prices and demand as virus
bites cut output as virus hits fuel demand, oil
prices fall oil companies cut capex by 25% on crude price
crash ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>