UPDATE 9-Oil rises 1%, hits highest in a year on growth hopes, OPEC+ output cuts

* U.S. crude up 9% in best weekly gain since October
* Brent up 6% in week, edging closer to $60/bbl
* U.S. shares scale peaks on stimulus progress, job market
rebound
* U.S. oil rig count rises, at highest since May -Baker
Hughes

(Updates to settlement)
By Devika Krishna Kumar
NEW YORK, Feb 5 (Reuters) - Oil prices rose about 1% on
Friday, after hitting their highest in a year and closing in on
$60 a barrel, supported by economic revival hopes and supply
curbs by producer group OPEC and its allies.
Oil was also supported as U.S. stock markets hit record
highs on signs of progress toward more economic stimulus, while
a U.S. jobs report confirmed the labor market was stabilizing.

Brent crude LCOc1 ended the session up 50 cents, or 0.9%,
at $59.34 after hitting its highest since Feb. 20 at $59.79.
U.S. crude CLc1 settled up 62 cents, or 1.1%, at $56.85, after
reaching $57.29, its highest since Jan. 22 last year.
U.S. crude futures gained about 9% this week, the biggest
percentage gain since October, in part due to U.S. inventories
last week dropping to levels last seen in March. EIA/S
Brent rose about 6% for the week.
"Brent is eyeing the $60 level now that OPEC+ has
successfully eased most supply side concerns and optimism on the
COVID front improves globally," said Edward Moya, senior market
analyst at OANDA in New York.
"The fundamentals remain solid for crude, but a
consolidation seems likely given the recent runup."
The last time Brent traded at $60 a barrel, the pandemic had
yet to take hold, economies were open and demand for fuel was
much higher.
The rollout of COVID-19 vaccines has fed hopes of demand
growth, but even optimists, such as the Organization of the
Petroleum Exporting Countries which expects a market deficit
throughout 2021, do not expect oil consumption to return to
pre-pandemic levels until 2022. "What is really helping the market today, and is a more
valid reason for the price rise we see, once again comes from
Saudi Arabia and its top firm, Aramco (SE:2222)," said Rystad Energy's
head of oil markets Bjornar Tonhaugen.
Aramco raised its Arab Light official selling price (OSP) to
Northwest Europe for March by $1.40 a barrel from the previous
month. This could signal Saudi Arabia is more confident in the
demand outlook, feeding bullish sentiment, Tonhaugen said.

OPEC and allies, collectively known as OPEC+, stuck to their
supply tightening policy at a meeting on Wednesday. Record OPEC+
cuts have helped lift prices from historic lows last year.
"OPEC+ discipline has been a real positive," said Michael
McCarthy, chief market strategist at CMC Markets.
The U.S. oil rig count, an early indicator of future output,
has risen for five straight months. This week, the number of
rigs rose by four to 299, the highest since May, according to
energy services firm Baker Hughes Co. RIG/U
The pace of recovery in the world's top producer, however,
is slow. The government this week projected U.S. crude output
will not to top its 2019 record of 12.25 million barrels per day
until 2023. Production in 2020 tumbled 6.4% to 11.47 million
bpd.