UPDATE 9-Oil jumps 2% as possible delay of U.S. tariffs on Mexico boosts equities

* U.S. pushes Mexico for more in talks over tariffs and
border
* Trump threatens China with tariffs on further goods
* U.S. crude oil output hits record 12.4 million bpd - EIA
* Putin says Russia, Saudi Arabia differ on fair price
* GRAPHIC-Oil moves into bear market: https://tmsnrt.rs/2WICWvf
* GRAPHIC-Crude output, storage surge: https://tmsnrt.rs/2DwTUBQ

(Updates prices and market activity to settlement, adds analyst
comments)
By Laila Kearney
NEW YORK, June 6 (Reuters) - Oil prices jumped more than 2%
on Thursday, reversing course after falling to near five-month
lows in the previous session, following a report that the United
States could postpone tariffs on Mexico.
Brent crude futures LCOc1 settled at $61.67 a barrel,
gaining $1.04, or 1.7%. U.S. West Texas Intermediate crude
futures CLc1 settled at $52.59 a barrel, up 91 cents, or 1.8%.
The benchmarks both rallied more than 2% in post-settlement
trade.
U.S. stocks, which oil prices tend to follow, spiked after
Bloomberg News reported the United States is considering a delay
in the tariffs as talks continue. "There's talk now that the U.S. might not put on the Mexico
tariffs, and that's pushed equities up, and you've got a little
bit of short covering based on that statement," said Dominick
Chirichella, director of risk management and advisory services
at EMI DTN in New York.
Prices had been near flat most of the session as sentiment
remained dim on fresh signs of a stalling global economy and
ongoing concerns about U.S. crude supply growth.
On Wednesday, Brent and WTI hit their lowest levels since
mid-January at $59.45 and $50.60, respectively, after U.S. crude
production hit a new record high and stockpiles hit their
highest since July 2017.
Both Brent and U.S. crude are in bear-market territory,
having lost more than 20% from peaks reached in late
April. Signals of slowing global economic activity have increased
in recent months, fueled by trade tensions between the United
States and China, the world's top two energy consumers.
U.S. President Donald Trump, in his latest public comments
about the trade war, said he would likely decide on more China
tariffs at the end of June, which followed his overnight threat
to put tariffs on "at least" another $300 billion worth of
Chinese goods.
Prices rallied strongly in the first five months of the year
to a high of nearly $75 a barrel, supported by supply curbs by
the Organization of the Petroleum Exporting Countries and some
allies including Russia. Supply has also been limited by
U.S. sanctions on oil exports from Iran and Venezuela.
Members of the OPEC+ group are set to discuss whether to
extend their supply curbs further later this month.
President Vladimir Putin said on Thursday that Russia had
differences with OPEC over what constituted a fair price for oil
but said Moscow would take a joint decision with OPEC colleagues
on output at a policy meeting in the coming weeks. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC-U.S. oil drilling, production & storage levels https://tmsnrt.rs/2DxgF8W
GRAPHIC-Oil moves into bear market https://tmsnrt.rs/2WFCqy7
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>