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* Saudi Arabia says ongoing supply cuts likely
* Stocks rally after U.S.-Mexico border deal avoids tradewar
* But concerns about global economic health persist(Adds comments, updates prices)
By Henning Gloystein
SINGAPORE, June 10 (Reuters) - Oil prices rose on Mondayafter Saudi Arabia said producer club OPEC and Russia werelikely to keep withholding supplies, and in relief as the UnitedStates withdrew its threat to impose import tariffs on Mexico,removing one cloud over the global economy.
Front-month Brent crude futures, the internationalbenchmark for oil prices, were at $63.52 at 0310 GMT, 23 cents,or 0.4%, above Friday's close.
U.S. West Texas Intermediate (WTI) crude futures wereat $54.29 per barrel, 30 cents, or 0.6%, above their lastsettlement.
Traders said crude prices were rising because of statementsby OPEC's de-facto leader Saudi Arabia on Friday saying that thegroup was close to agreeing extended supply cuts.
"Brent futures continue rising ... after the Saudi ArabianEnergy Minister expressed confidence that OPEC+ producers willprolong their output cuts programme through the second half of2019," said Han Tan, analyst at futures brokerage FXTM.
The Organization of the Petroleum Exporting Countries (OPEC)and some non-members, including Russia, known collectively as"OPEC+", have withheld supplies since the start of the year toprop up prices.
Stephen Innes, managing partner at Vanguard Markets, saidstronger stock markets also supported oil futures.
"With the Mexican stalemate averted and no harmfulshockwaves from this weekend G-20 meeting ... oil could tradefavourably as WTI and Brent will continue to track the broaderrisk environment high," Innes said.
Stock markets rose on Monday after a deal between the UnitedStates and Mexico to combat illegal migration from CentralAmerica late last week removed the threat of U.S. tariffs ongoods imported from Mexico.
But analysts said there were still concerns about the healthof the global economy, with the United States and China stilllocked in a trade war.
"Slowing global demand appears to be featuring prominentlyon the markets’ collective mind, as the fallout from heightenedtrade tensions continues to be felt in the global economy," saidFXTM's Tan.
"The sustainability of oil's recent climb could bedetermined by the outlooks of several key industry bodiesscheduled this week, whereby more downcast projections forglobal demand could prompt traders to continue chipping away atoil," he added.
Oil major BP is to publish its statistical review ofglobal energy markets on Tuesday, while China on Friday isscheduled to publish its monthly commodities output data.(Reporting by Henning Gloystein; Editing by SimonCameron-Moore)
