UPDATE 7-Oil in longest rally in two years as vaccines boost demand hopes

* Crude benchmarks rise to 13-month highs
* OPEC+ supply restraint, vaccine rollouts support
* U.S. crude stockpiles fall 6.6 million barrels in week -
EIA

(New throughout, updates prices, market activity and comments;
new byline, changes dateline, previous LONDON)
By Jessica Resnick-Ault
NEW YORK, Feb 10 (Reuters) - Oil rose on Wednesday,
extending its rally for a ninth day, its longest winning streak
in two years, supported by producer supply cuts and hopes
vaccine rollouts will drive a recovery in demand.
U.S. crude inventories fell unexpectedly in the week,
dropping 6.6 million barrels according to the Energy Information
Administration, compared with an expected 985,000-barrel
increase forecast in a Reuters poll. EIA/S
Brent crude LCOc1 was up 30 cents, or 0.5%, at $61.39 by
10:54 EST (1654 GMT) after touching a 13-month high of $61.61
earlier in the session. U.S. crude CLc1 was up 22 cents, or
0.3%, to $58.57, having touched $58.76, also a 13-month high.
"A combination of higher refining activity and lower imports
resulted in a fourth consecutive draw to oil inventories, and a
chunky one at that," said Matt Smith, director of commodity
research at ClipperData. He cautioned that a build to gasoline
inventories offset the bullish draw.
Brent has now risen for nine sessions in a row, its longest
sustained period of gains since December 2018 to January 2019.
It is the eighth daily rise for U.S. crude. Some analysts say
prices have moved too far ahead of the underlying fundamentals.
"The current price levels are healthier than the actual
market and entirely reliant on supply cuts, as demand still
needs to recover," said Bjornar Tonhaugen of Rystad Energy.
Crude has jumped since November as governments kicked off
vaccination drives for COVID-19 while putting in place large
stimulus packages to boost economic activity, and the world's
top producers kept a lid on supply.
Top exporter Saudi Arabia is unilaterally reducing supply in
February and March, supplementing cuts agreed by other members
of the Organization of the Petroleum Exporting Countries (OPEC)
and allies, known as OPEC+.
Some analysts forecast supply will undershoot demand in 2021
as more people get vaccinated and start going away on trips and
working in offices.

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CHART: U.S. oil may rise into $58.88-59.38 range
Brent oil may rise into $61.74-$62.23 range
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