UPDATE 10-Oil up nearly 11 percent on Saudi supply cuts

                                
 * Saudi Arabia cuts supplies
                                
 * Markets await U.S. election result
                                
 * MasterCard earnings shows strong consumer sentiment
 (Updates prices, market activity)
                                
 By Edward McAllister
                                
 NEW YORK, Nov 4 (Reuters) - Oil prices jumped nearly 11
percent on Tuesday on signs Saudi Arabia had made substantial
cuts in its crude exports and as global financial markets
rallied.
                                
 Saudi Arabia has reduced exports after OPEC 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. [nSP353393]
                                
 U.S. crude <CLc1> rose $6.97 at $70.88 a barrel by 1:31
p.m. EST (1831 GMT). London Brent crude <LCOc1> was up $6.51 at
$66.99 a barrel.
                                
 Crude prices have plummeted from a record above $147 a
barrel in July as the global credit crisis has hit the wider
economy, dampening fuel demand in major consumer nations,
including the United States.
                                
 The steep drop prompted the Organization of Petroleum
Exporting Countries 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.
                                
 U.S. stocks climbed further on Tuesday as the presidential
election got under way, with investors picking up shares
trading around five-year lows amid further signs of easing in
global credit markets. [ID:nN04434852]
                                
 Strong earnings reports from MasterCard Inc, the world's
second largest card network, and Archer Daniels Midland Co
improved optimism about consumer spending and pricing power.
                                
 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. [nN04356344]
                                
 (To view a factbox on both candidates energy positions,
click [ID:nN04540592])
                                
 OPEC CUTS
                                
 In addition to Saudi Arabia, 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.
                                
 A 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 1.3
million barrels in distillate inventories and a decline of 1
million barrels in gasoline stocks.
 (Additional reporting by Gene Ramos and Robert Gibbons in New
York, Jane Merriman and Joe Brock in London; Editing by Walter
Bagley)