UPDATE 11-Oil jumps 10 percent on Saudi supply cuts

                                
 * Saudi Arabia, other OPEC members seen cutting output
                                
 * Markets await U.S. election result
                                
 * U.S. gasoline demand up 1.3 percent week on week
 (Updates prices, adds Venezuela cuts, Mastercard data)
                                
 By Edward McAllister
                                
 NEW YORK, Nov 4 (Reuters) - Oil prices jumped more than 10
percent on Tuesday on signs Saudi Arabia and other OPEC members
had made cuts in crude exports and as global financial markets
rallied ahead of the U.S. election result.
                                
 Saudi Arabia has reduced exports after the Organization of
the Petroleum Exporting Countries agreed last month to lower
output, according to trade sources, with some estimating the
world's top exporter had cut shipments by around 900,000
barrels per day from a peak in August. [ID:nSP353393]
                                
 U.S. crude <CLc1> settled up $6.62 at $70.53 a barrel.
London Brent crude <LCOc1> rose $5.96 to settle at $66.44 a
barrel.
                                
 Crude prices have plummeted from a record above $147 a
barrel in July as the global credit crisis hit the wider
economy, damping fuel demand in major consumer nations,
including the United States.
                                
 The steep drop prompted OPEC to agree to reduce output by
1.5 million bpd at an emergency meeting last month, and some
members have called for additional reductions.
                                
 "Saudi Arabia has told major oil companies that it will
restrict the volume they can load this month, answering
skepticism about the kingdom's compliance with OPEC's Oct. 24
deal to cut output," Mike Fitzpatrick, vice president at MF
Global, wrote in a research note.
                                
 Venezuela said it had informed its clients of supply cuts
that began on Nov. 1 and added it will propose a further output
cut of 1 million barrel bpd at the next OPEC meeting in
December. [ID:nN04484369]
                                
 U.S. stocks climbed on Tuesday as the presidential election
result promises to resolve a key question overhanging the
market, with investors picking up shares trading around
five-year lows amid further signs of easing in global credit
markets. [ID:nN04482993]
                                
 Further support came as the dollar endured its biggest
one-day drop against a basket of currencies in 13 years, with
investors betting global interest rate cuts will stimulate
growth and alleviate the global financial crisis.
[ID:nN04320144]
                                
 Earlier this year, investors rushed into commodities as a
hedge against inflation and the weak greenback.
                                
 "The Saudi cuts were the main oil-related news, but the
dollar had a big reversal lower," said Tom Bentz, analyst at
BNP Paribas Commodity Futures Inc.
                                
 Democrat Barack Obama and Republican John McCain faced the
verdict of U.S. voters after a long and bitter struggle for the
White House, with Obama holding a decisive edge in national
opinion polls. [ID:nN04356344]
                                
 (To view a factbox on both candidates energy positions,
click [ID:nN04540592])
                                
 U.S. gasoline demand edged up 1.3 percent last week from
the previous week as national average prices for the fuel
dropped, according to Mastercard advisors, although it remained
3.9 percent below year-ago levels.[ID:nN27343533]
                                
 OPEC CUTS
                                
 In addition to Saudi Arabia and Venezuela, other OPEC
members were also showing signs of throttling back output.
                                
 The United Arab Emirates has reduced its production to
around 2.3 million bpd from around 2.5 million bpd, a top state
oil company official said on Tuesday. [ID:nSP168697]
                                
 Algeria was reducing oil output by 71,000 bpd in line with
OPEC's supply cut decision, the Algerian official news agency
APS said on Tuesday, quoting the country's Energy and Mining
Ministry.  [ID:nL4640942].
                                
 Qatar has cut exports to Asia by about 40,000 bpd,
effective this month, Energy Minister Abdullah al-Attiyah told
Reuters.
                                
 An updated poll of analysts ahead of U.S. weekly government
inventory data forecast U.S. crude oil stocks rose by 1.1
million barrels last week. The analysts predicted a rise of 1.4
million barrels in distillate inventories and a decline of
800,000 barrels in gasoline stocks. [EIA/S]
 (Additional reporting by Gene Ramos and Robert Gibbons in New
York, Jane Merriman and Joe Brock in London; Editing by
Marguerita Choy)