UPDATE 8-Oil rises 5% in second weekly gain on output cuts, demand hopes

* For the week, Brent rises 18% while WTI up 33%
* U.S. oil and gas rigs hit all-time low this week- Baker
Hughes
* North American oil cuts could hit 1.7 mln bpd by end-June
* Market watches for data supporting adherence to OPEC+ cuts
* Australia, France and U.S. plan to ease lockdowns

(Adds settlement prices)
By Laura Sanicola
NEW YORK, May 8 (Reuters) - Oil prices settled 5% higher on
Friday in their second consecutive week of gains as U.S.
producers cut production with the number of drilling rigs
falling to a record low, and as more states moved ahead with
plans to relax lockdowns intended to halt the coronavirus
pandemic.
The number of operating oil and natural gas rigs fell by 34
to an all-time low of 374 this week - reflecting data going back
80 years - as the energy industry slashes output and spending to
deal with the coronavirus-led crash in fuel demand. RIG/U
North American oil companies have shut production faster
than analysts expected and are on track to withdraw about 1.7
million barrels per day (bpd) of output by the end of June.

Brent crude LCOc1 settled up $1.51, or 5.1%, at $30.97 a
barrel. U.S. West Texas Intermediate crude futures (WTI) CLc1
gained $1.19, or 5%, to $24.74 a barrel.
Both contracts posted a second week of gains, with Brent
advancing over 18% this week and WTI up about 33%.
"This advance of the past couple of weeks has been a bit
suspect given the fact that coronavirus cases continue to
increase and the U.S. crude surplus is maintaining a steep up
trend where a record U.S. stock level is likely to be achieved
in next week's EIA report," Jim Ritterbusch, president of
Ritterbusch and Associates in Galena, Illinois, said in a
report.
The U.S. Energy Information Administration's weekly report
on Wednesday showed 15 weeks of consecutive rises in crude
stocks although the rate of growth in inventories has slowed
since a record build of 19 million barrels in early April.
EIA/S
The market was now watching for more data that shows that
Organization of the Petroleum Exporting Countries (OPEC) and
allies led by Russia - known as OPEC+ - are complying with a
record 9.7 million bpd production cuts that began this month,
according to Andrew Lipow, president of Lipow Oil Associates in
Houston.
"I expect now prices will pull back to $20 a barrel because
skepticism will come into the market about the compliance of
OPEC+ on the production cuts," said Lipow.
Iraq has yet to inform its regular oil buyers of cuts to its
exports, suggesting it is struggling to fully implement supply
cuts.
"All it takes is one or two countries not to comply and it
could open the door for others," Lipow said.
Australia on Friday became the latest country to plan an
easing of lockdowns, while France, parts of the United States
and countries such as Pakistan are also planning to ease
restrictions. participants were also watching how the economic
crisis unfolding in the United States affects oil demand in the
coming months. The world's biggest economy lost a staggering
20.5 million jobs in April, the steepest plunge in payrolls
since the Great Depression. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
CHART: U.S. oil may retest support at $22.65 per barrel
Brent oil may fall into $27.68-$28.74 range
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