(Corrects headline to read "OPEC Feb output" instead of "Jan output")
By Barani Krishnan
NEW YORK, Feb 29 (Reuters) - Oil prices rose more than 2 percent on Monday after China moved to boost its slowing economy and Saudi Arabia pledged to work with other crude producers to limit market volatility, developments that fed hopes the oil selloff would end.
A Reuters poll also indicated the Organization of the Petroleum Exporting Countries pumped less crude this month than in January, boosting market sentiment.
"Crude and product prices have the ability to stabilize for a couple of months as long as storage constraints are not forcing supply to be backed up toward the producing fields," said Jim Ritterbusch of energy markets consultancy Ritterbusch & Associates in Chicago.
Brent crude's front-month futures contract LCOc1 was up 90 cents at $36 a barrel by 11:13 a.m. EST (1613 GMT), ahead of its expiry. Brent's more-active second month LCOc2 rose more than $1.20 a barrel at the session high.
U.S. crude's front-month CLc1 rose by 70 cents to $33.48 a barrel.
Oil prices are still down about 70 percent from mid-2014 highs above $100 a barrel. But a steady rebound over the past two weeks has some traders and investors thinking the market may have found a near-term bottom.
China, the world's largest oil importer, on Monday cut its reserve requirement ratio, the amount of cash banks must hold as reserves, for the fifth time in a year. The move boosted risk appetite across financial markets. Arabia, which is working with OPEC members Venezeula and Qatar and non-OPEC producer Russia on a plan to freeze oil output at January highs, said it wanted stability in crude prices. Iran remained a stumbling block to the plan with its target to raise output to reach pre-sanction export levels. Saudi cabinet said in a statement it "will always remain in contact with all main producers in an attempt to limit volatility and it welcomes any cooperative action".
The Reuters poll indicated that OPEC output fell by 280,000 barrels per day (bpd) from January. O/POLL
Countering that, Iran said on Monday its oil exports rose over the past month, climbing as high as 1.75 million barrels per day, adding to an already oversupplied market. GRAPHIC on volume of open WTI shorts
http://tmsnrt.rs/1QFA03W GRAPHIC on short vs long positions in oil markets
http://tmsnrt.rs/1Sb50hI FACTBOX-Double hammer in a leap year: when will the oil slump end?