Oil prices lifted for 4th day by signs of output cuts and demand pick-up

* June WTI contract hits 9-week high before Tuesday's expiry
* No sign of WTI plunge seen at previous month's expiry
* Brent touches highest since April 9
* OPEC+ cut exports sharply in 1st half of May -tracking
companies

By Yuka Obayashi
TOKYO, May 19 (Reuters) - Oil prices rose on Tuesday,
extending gains for a fourth straight session, amid signs that
producers are cutting output as promised just as demand picks
up, stoked by more countries easing out of curbs imposed to
counter the coronavirus pandemic.
Brent crude LCOc1 climbed $0.85, or 2.4%, to $35.66 a
barrel by 0033 GMT, after touching its highest since April 9.
U.S. West Texas Intermediate crude CLc1 was up $1.30, or
4.1%, at $33.12 a barrel, after hitting its highest since March
16.
The June WTI contract expires on Tuesday, but there was
little sign of a repeat of the historic plunge below zero seen a
month ago on the eve of the May contract's expiry amid signs
that demand for crude and derived fuels is recovering from its
nadir. The market was also boosted by signs that output cuts agreed
by the Organization of the Petroleum Exporting Countries (OPEC)
and others including Russia, a group known as OPEC+, are being
implemented on the ground.
OPEC+ has cut its oil exports sharply in the first half of
May, companies that track the shipments said, suggesting a
strong start in complying with a new production cut agreement.
"Investors' sentiment has improved as OPEC+ are apparently
slashing output as they promised for this month, with more
voluntary cuts expected in June," said Hiroyuki Kikukawa,
general manager of research at Nissan Securities.
"At the same time, there is growing optimism that the easing
of global (coronavirus) lockdowns will help boost economic
activity and fuel demand," he said, predicting the U.S. crude
benchmark could rise to $35 a barrel.
In further support for prices, U.S. production is also
falling, with crude output from seven major shale formations
expected to fall by a record 197,000 barrels per day in June to
7.822 million barrels per day. That would be the lowest since
August 2018, according to the U.S. Energy Information
Administration.