UPDATE 9-Oil jumps 2%, hits highest in a year as producers limit supply

* OPEC output increase smaller than expected -poll
* U.S. blizzard could lift product demand
* U.S. crude, gasoline stocks seen up, distillate likely
fell-poll
* Coming Up: API weekly inventory data at 4:30 p.m./2130 GMT

(Updates with settlement prices, details)
By Jessica Resnick-Ault
NEW YORK, Feb 2 (Reuters) - Oil prices rose 2% on Tuesday,
reaching their highest in 12 months after major producers showed
they were reining in output roughly in line with their
commitments.
The global and U.S. crude benchmarks rallied as optimism
about more U.S. economic stimulus added to market bullishness
from OPEC production levels, which rose less than expected in
January.
Brent crude LCOc1 settled up $1.11, or 2%, at $57.46 a
barrel, after its third straight day of gains. During the
session, it touched $58.05, the highest levels since January
last year.
U.S. oil CLc1 gained $1.21, or 2.3%, to close at $54.76,
after hitting a session high of $55.26, the highest in a year.
Crude output from the Organization of the Petroleum
Exporting Countries rose in January for a seventh month but the
increase was smaller than expected, a Reuters survey found.
Voluntary cuts of 1 million barrels per day by OPEC's de
facto leader, Saudi Arabia, are set to be implemented from the
beginning of February through March.
Russian output increased in January but is in line with the
OPEC+ supply pact, while in Kazakhstan, oil volumes fell for the
month. The rally picked up steam as the U.S. Congress looked ready
to adopt an economic stimulus package, and as cold U.S. weather
boosted heating oil demand.
"You got the U.S. economic stimulus package that no one
thought we would get," said Bob Yawger, director of energy
futures at Mizuho in New York.
The Democratic-led U.S. House of Representatives prepared to
take the first step forward on President Joe Biden's $1.9
trillion COVID-19 relief package on Tuesday, with a key vote
expected to fast-track the measure through Congress.
A cold snap and heavy snow in the U.S. Northeast drove the
margin for heating oil HOc1-CLc1 to an 8-month high of $15.84,
lending further support to crude. U.S. distillate fuel stockpiles, including heating oil, were
forecast to have dropped 400,000 barrels last week, according to
a Reuters poll. Crude stockpiles were expected to rise by
400,000 barrels. EIA/S
Inventory estimates from the American Petroleum Institute, a
trade group, are expected at 4:30 p.m. (2130 GMT), and
government figures follow on Wednesday. API/S
However, energy giant BP BP.L flagged a difficult start to
2021 amid declining product demand, noting that January retail
volumes were down about 20% year-on-year, compared with a
decline of 11% in the fourth quarter.
Oil demand is nevertheless expected to recover in 2021, BP
said, with global inventories seen returning to their five-year
average by the middle of the year. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
CHART: U.S. oil may rise into $54.60-$55.10 range
Brent oil may rise into $57.52-$58.01 range
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>