CORRECTED-UPDATE 1-Oil rises on stronger financial markets, expectations of extended supply cuts

(Corrects paragraph 2 to Monday's close, not Friday's)
* Russia signals it may support continued supply cuts with
OPEC
* Economic downturn is starting to dent fuel demand growth
* Global oil demand growth could fall below 1 million bpd -
FGE

By Henning Gloystein
SINGAPORE, June 11 (Reuters) - Oil prices rose on Tuesday in
line with firmer financial markets and bolstered by expectations
that producer goup OPEC and its allies will keep withholding
supply.
Front-month Brent crude futures LCOc1 , the international
benchmark for oil prices, were at $62.71 at 0630 GMT, 42 cents,
or 0.7%, above Monday's close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
at $53.85 per barrel, 59 cents, or 1.1%, above their last
settlement.
Prices fell by around 1% in the previous session and crude
futures are down by some 20% from their 2019 peaks in late
April, dragged lower by a widespread economic downturn that has
started to impact oil consumption.
Traders said crude oil futures on Tuesday were pushed up by
a broader lift in financial markets after Beijing eased
financing rules to stem an economic downturn. On the production side, Russia said on Monday it might
support an extension of supply cuts that have been in place
since January, warning oil prices could fall as low as $30 per
barrel if producers supply too much crude. The Organization of the Petroleum Exporting Countries (OPEC)
and some non-affiliated producers including Russia, known
collectively as OPEC+, have withheld supplies since the start of
the year to prop up prices.
OPEC+ is due to meet in late June or early July to decide
output policy for the rest of the year.
"Without OPEC+ adherence to supply discipline in the
deteriorating environment prices would drop to $40 in a
heartbeat, which suggests the extension deal is a lock," said
Stephen Innes, managing partner at Vanguard Markets.
Energy consultancy FGE said global crude oil demand growth
could drop below 1 million barrels per day (bpd) in 2019, down
from previous expectations of 1.3 to 1.4 million bpd.
"This effectively gives us an extra 300,000-400,000 barrels
per day of supply," said FGE chairman Fereidun Fesharaki.
Despite Tuesday's stronger markets, concerns about the
health of the global economy remained.
"With China slowing, the EU sickly and the U.S. data
starting to wobble, an economic downturn remains a clear and
present danger," said Innes.