TOKYO, June 7 (Reuters) - Oil prices rose on Friday,

continuing to climb after OPEC+ members Saudi Arabia and Russia

indicated readiness to pause or reverse output agreements and as

an interest rate cut in Europe raised the prospect of a similar

U.S. move.

Brent crude futures rose 16 cents or 0.2% to $80.03

per barrel and U.S. West Texas Intermediate crude futures

rose 16 cents or 0.2% to $75.71 as at 0007 GMT.

Prices rallied on Thursday when Saudi Arabia and Russia

tried to reassure markets on supply agreements. However, they

are heading for a weekly loss after analysts saw Sunday's OPEC+

meeting as indicating rising supply which is bearish for prices.

OPEC+, the Organization of the Petroleum Exporting Countries

and allies including Russia, agreed to extend most production

cuts into 2025 but left room for voluntary cuts from eight

members to be unwound gradually.

Attending an event in Russia on Thursday along with Russian

Deputy Prime Minister Alexander Novak, Saudi Energy Minister

Prince Abdulaziz bin Salman said OPEC+ can pause or reverse

voluntary output increases if it decides the market is not

strong enough.

"We are ready to react quickly to market uncertainties,"

Novak said at the event, adding the price drop after the weekend

meeting was caused by misinterpretation of the agreement and

"speculative factors".

Jarand Rystad, founder and chief executive of Rystad Energy

consultancy, told Reuters that OPEC+ would likely persist in

managing the market but "further cuts may be necessary as demand

softens slightly while the supply remains sufficient unless

adjustments are made".

"The sweet spot for OPEC+ lies within the price range we've

witnessed - low 80s to high 70s (in U.S. dollars per barrel).

Despite some Russian volumes being cut from the market due to

sanctions and drone attacks, the impact remains manageable," he

said.

The European Central Bank went ahead with its first interest

rate cut since 2019 on Thursday, prompting analyst expectations

of the U.S. Federal Reserve following the suit. Lower rates

boost oil demand.

On Friday, market participants will be awaiting the release

of Chinese commodity trade data for indication of demand

direction in the world's second-biggest oil consumer after the

U.S., ANZ Research analysts wrote in a client note.