* Market turns course as Venezuela reaffirms output freeze
meeting
* Project delays by Continental, Halliburton (N:HAL) job cuts aid
rebound
* Prices down earlier on builds to record high U.S. crude
stocks
(New throughout, adding market settlements and rally in
gasoline)
By Barani Krishnan
NEW YORK, Feb 25 (Reuters) - Crude oil futures jumped 3
percent on Thursday, reversing earlier loses after confirmation
of a meeting of major producers and news of project delays and
job cuts in the industry.
Venezuela reaffirmed a mid-March meeting of oil producers
that would include Saudi Arabia, Russia and Qatar, to stabilize
prices that have slumped 70 percent in a 20-month rout.
The four countries are involved in an effort to get oil
producers in the Organization of the Petroleum Exporting
Countries and elsewhere to freeze production at January's highs.
Many traders believe an output cut and not freeze is what the
market needs to clear the global crude glut.
"It's the Venezuela headline that got the market excited
enough to rebound, though it's baffling why as everyone knows of
this meeting and that it's not going to achieve anything," said
John Kilduff, partner at Again Capital, a New York energy hedge
fund.
U.S. crude futures CLc1 settled up 92 cents, or 2.9
percent, at $33.07 a barrel. It had slid more than $1 at the
session low.
Brent crude futures LCOc1 finished up 88 cents, or 2.6
percent, at $35.29 a barrel, hitting a three-week high. It had
also dropped more than $1 earlier.
The rally in crude also boosted gasoline futures RBc1 ,
which settled up nearly 5 percent after rallying from early in
the day on strong demand for the motor fuel. USOILG=ECI
Aside from the March meeting, traders said sentiment in oil
was helped by project deferments in the U.S. shale industry and
job cuts that will slow production.
Continental Resources Inc CLR.N , one of the biggest shale
drillers in North Dakota, said it planned to continue deferring
project completions in the Bakken fields due to low crude
prices.
Oil services provider Halliburton said it will start a new
round of global layoffs that will cut 5,000 jobs.
Oil prices had fallen as much 3 percent earlier on Thursday
after data indicating new record highs in U.S. crude
inventories.
Stockpiles at the Cushing, Oklahoma delivery point for U.S.
crude futures rose by more than 503,000 barrels to reach above
67.5 million barrels between Feb. 19 and Feb. 24, traders said,
quoting data by market intelligence provider Genscape.
Officially, the U.S. government reported on Wednesday that
Cushing added 333,000 barrels last week to reach 65.1 million
for a fourth straight week of record highs. Nationwide,
inventories rose to all-time peaks above 507 million barrels.
USOICC=ECI EIA/S