UPDATE 8-Oil rises slightly as OPEC+ complies with production cuts

* OPEC+ complies 107% of agreed oil output cuts in June
-source
* OPEC+ panel expected to endorse easing of supply cuts
* Production cuts to taper off from August under supply pact
* Demand recovery threatened by surging coronavirus cases
* Coming Up: Weekly API oil data at 4:30 p.m. (2030 GMT)

(Updates with API inventories)
By Jessica Resnick-Ault
NEW YORK, July 14 (Reuters) - Oil prices rose slightly on
Tuesday as OPEC and its allies cut production by more than
agreed to in June, although demand concerns lingered due to
increased cases of COVID-19 in the United States.
Brent crude LCOc1 futures settled up 18 cents at $42.90 a
barrel, after moving lower earlier in the session. U.S. West
Texas Intermediate (WTI) crude CLc1 futures rose 19 cents to
$40.29 a barrel.
Crude futures strengthened in post-settlement trading,
rising after the American Petroleum Institute, a trade group,
said U.S. crude inventories fell more than expected in the
latest week.
The market will be watching for additional weekly data
Wednesday from the U.S. Energy Information Administration.
EIA/S
Analysts estimate that U.S. gasoline stockpiles fell by
600,000 barrels and crude oil inventories by 2.1 million barrels
last week, a preliminary Reuters poll showed.
The Organization of the Petroleum Exporting Countries and
its allies led by Russia, collectively known as OPEC+, have
delivered compliance of 107% with their agreed oil output cuts
in June, an OPEC+ source said on Tuesday. The market is eagerly awaiting news from OPEC+ on the next
level of production cuts. OPEC's Joint Technical Committee meets
on Tuesday, with the Joint Ministerial Monitoring Committee due
to meet on Wednesday.
Under the existing supply pact, OPEC+ is set to taper its
record production cut of 9.7 million barrels per day (bpd) to
7.7 million bpd from August through December.
"OPEC+ speculation had weighed the market down, and now the
compliance data came out, and that's supportive," said John
Kilduff, a partner at Again Capital Management in New York.
Still, the market remained cautious on concerns that states
could increase coronavirus lockdown measures as California did
on Monday, following similar moves in other states, such as
Florida and Texas.
New restrictions were also introduced in Asia and Australia.
The oil market is moving closer to balance as demand
gradually rises, OPEC's secretary general said on Monday.

OPEC's monthly report said it expected global demand to grow
by a record 7 million bpd next year, but that demand will still
be weaker than pre-COVID. China's June crude oil imports hit both daily and monthly
highs, data showed. However, Citi analysts said the looming supply increase
could weigh on prices given demand uncertainties. Morgan Stanley
said oil demand is unlikely to exceed pre-COVID levels until
late 2021.