UPDATE 10-Oil steadies as Russia touts easing OPEC+ output

* Kuwait-Saudi Neutral Zone dispute nears resolution
* Hopes of U.S.-China trade deal support prices
* U.S. oil rig count rises by most since February 2018
* Graphic on U.S. rig count: https://tmsnrt.rs/2XdttIW

(Updates to settlement)
By Devika Krishna Kumar
NEW YORK, Dec 23 (Reuters) - Oil prices were little changed
on Monday as Russia said an OPEC-led producer group may consider
easing output cuts next year, offsetting support from some
investor optimism that an initial U.S.-China trade deal would be
signed soon.
Brent crude LCOc1 settled up 25 cents, or 0.4%, at $66.39
after a day of thin trading ahead of the Christmas holiday. West
Texas Intermediate CLc1 ended the session up 8 cents, or 0.1%,
at $60.52 a barrel.
The Organization of the Petroleum Exporting Countries and
other top producing nations led by Russia agreed this month to
extend and deepen output cuts in the first quarter of 2020.
However, Russian Energy Minister Alexander Novak said on
Monday that the group, known as OPEC+, may consider easing the
output restrictions at its meeting in March. "We can consider any options, including gradual easing of
quotas, including continuation of the deal," Novak told Russia's
RBC TV in an interview recorded last week, adding that Russia's
oil output was set to hit a record high this year.
Non-OPEC global supply is expected to rise next year due to
higher output from countries including the United States,
Brazil, Norway and Guyana, which became an oil producer last
week. Another source of more oil could emerge in the coming months
after Kuwait indicated that a longstanding dispute over the
"Neutral Zone" on its border with Saudi Arabia will be resolved
by the end of 2019. Production at two large oil fields in the Neutral Zone was
halted more than three years ago, cutting output by some 500,000
barrels per day.
"Oil prices remained soft after Friday's drop that stemmed
from the Saudi Arabia and Kuwait deal to resume production along
their border ... The short-squeeze on oil may be running out of
steam but if WTI and Brent prices can hold $60 and $65
respectively, we could see prices remain supported going into
the first few weeks of January," said Edward Moya, senior market
analyst at OANDA in New York.
Oil prices have risen since the United States and China
agreed on a so-called Phase 1 trade deal earlier this month
following months of tit-for-tat negotiations that unsettled
markets. President Donald Trump said on Saturday the United
States and China would "very shortly" sign the pact.
Under the pact, the United States is expected to agree to
reduce some tariffs in return for a big increase in purchases of
U.S. agricultural products by Chinese importers. Data showing that U.S. energy companies added the most oil
rigs last week since February 2018, primarily in the Permian
shale basin, also put pressure on prices. RIG/U

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GRAPHIC: U.S. rig count, crude production https://tmsnrt.rs/2X8Myf7
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