UPDATE 5-Oil rises above $43, Saudi deepens cuts

                                
 * Oil jumps 6 pct after fall to 4-year low last week
                                
 * Saudi deepens some supply cuts ahead of OPEC meeting
                                
 * Equity market bounce aids sentiment across commodities

                                
 (Recasts, adds analyst comment, updates prices, previous
TOKYO/SINGAPORE)
                                
 LONDON, Dec 8 (Reuters) - Oil leapt 6 percent on Monday to
more than $43 a barrel, as a rebound in global equity markets
and further evidence of supply cuts by top exporter Saudi Arabia
helped the market break a six-session losing streak.
                                
 Prices dropped 25 percent last week, their biggest weekly
fall in nearly 18 years, depressed by the world economic
outlook.
                                
  U.S. crude for January delivery <CLc1> was up $2.56 to
$43.37 a barrel by 1003 GMT. It fell more than 6 percent on
Friday to close at $40.81, its lowest since December 2004.
                                
 London Brent crude <LCOc1> rose $2.56 to $42.30 a barrel.
                                
 "Prices are higher on account of a short-covering bounce
from extremely oversold conditions," Edward Meir, of futures
broker MF Global, said.
                                
 "OPEC's meeting is nine days away, meaning that we could see
some strengthening leading into the meeting," he said.
                                
 Oil has fallen more than $100 a barrel from a record peak
above $147 in July, as the credit crisis has started to hurt the
wider economy and shrink demand for fuel.
                                
 Members of the Organization of the Petroleum Exporting
Countries have called for more supply cuts when the producer
group meets on Dec. 17 in Algeria. [ID:nL3531815]
                                
 
                                
 SAUDI CUTS BACK
                                
 OPEC has already agreed to cut about 2 million barrels per
day (bpd) of production. Top exporter Saudi Arabia has just
provided further evidence of its intent to keep the taps tight.
                                
 The kingdom told at least two oil refiners in Asia on Monday
it would deepen oil supply cuts to as much as 10 percent of
normal contracted volumes in January versus a 5 percent cut in
December supplies [nT174159]. It also reduced January supplies
to some European refiners.
                                
 But OPEC may need to make an additional cut of as much as 2
million bpd to bolster prices in a market where demand is
falling.
                                
 "The current downturn in prices has already priced in at
least a 1.5 million bpd cut," Tetsu Emori, a commodities fund
manager at Japan's Astmax Co. Ltd, said.
                                
 Monday's rally spanned the commodities complex, with gold
and copper rebounding strongly [GOL/]. European shares were
firmer after strong gains in Asia. [.EU]
                                
 Oil's steep losses on Friday followed a U.S. employment
report which showed the heaviest job losses in 34 years in the
world's top energy consumer. [ID:nHKG345012]
                                
 But global markets have taken heart from efforts by
Washington to finalise a rescue for the struggling U.S. auto
industry. [ID:nN07462460]
                                
 Oil could also find support from predictions of a cold
winter in the United States, with December set to be the coldest
since 2000 on average. [nN0545270]
 (Reporting by Jane Merriman in London, Osamu Tsukimori in
Tokyo, and Jonathan Leff in Singapore)