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UPDATE 6-Oil rebounds on Saudi assurances Russia will extend supply cuts

* Saudi Arabia says most in OPEC and Russia on board for new cuts

* OPEC sources say group unlikely to deepen cuts

* Market losing faith in speedy rebalancing

* Hedge fund Andurand Capital liquidates long position in oil

* Coming Up: Baker Hughes U.S. rig count data at 1 p.m. (1700 GMT) (Adds latest price, fresh quotes)

NEW YORK, May 5 (Reuters) - Oil prices rebounded from five-month lows on Friday following assurances by Saudi Arabia that Russia is ready to join OPEC in extending supply cuts to reduce a persistent glut.

Traders also noted the technically oversold condition of the oil complex, which collapsed almost 20 percent from recent highs in mid April, helped restrict further selling.

Brent futures were up $1.20, or 2.5 percent, at $49.58 a barrel by 11:02 a.m. EDT (1502 GMT), while U.S. West Texas Intermediate crude was up $1.09, or 2.4 percent, at $46.61 per barrel.

After falling almost 5 percent on Thursday, both contracts continued to collapse overnight with WTI falling to $43.76, its lowest since Nov. 15, and Brent down to $46.64, its lowest since Nov. 30 when the Organization of the Petroleum Exporting Countries (OPEC) agreed to cut production during the first half of 2017.

Both benchmarks started to trim earlier losses after Saudi Arabia's OPEC Governor Adeeb Al-Aama told Reuters that OPEC and non-OPEC nations were close to agreeing a deal on supply cuts.

"Based on today's data, there's a growing conviction that a six-month extension may be needed to rebalance the market, but the length of the extension is not firm yet," the Saudi official said.

OPEC sources said on Thursday that OPEC is likely to extend cuts when it meets on May 25 but that a deeper cut is unlikely. OPEC and non-OPEC states initially agreed to cut 1.8 million barrels per day (bpd) in the first six months of 2017.

Despite the gains so far on Friday, both benchmarks were on track to fall for a third week in a row, their longest losing streak since November.

Brent and WTI futures are down about 17 percent so far this year despite OPEC efforts to support prices. The benchmarks are trading around levels last seen before the joint deal to cut output was first announced.

"The energy complex is slowly succumbing to an opinion that this years OPEC production cuts have been ineffective," Jim Ritterbusch, president of Chicago-based energy advisory firm Ritterbusch & Associates, said in a note.

"We feel that the (OPEC) cartel has come to a fork in the road in which the current agreement will be abandoned or steps will need to be taken to double down on current efforts by increasing production curtailments," Ritterbusch said.

Brent traded volumes on Thursday reached a record high of nearly 542,000 contracts, suggesting that hedge funds had accelerated reductions to their long positions. (http://tmsnrt.rs/2oSQUu5).

Pierre Andurand, who runs one of the biggest hedge funds specializing in oil, liquidated his fund's last long positions in oil last week and is running a very reduced risk at the moment, a market source familiar with the development said.

"It is now-or-never for oil bulls," said U.S. commodity analysis firm The Schork Report. "They either put up a defense here or risk further emboldening the bears for a run at the $40 threshold (for WTI)."

Adding to concerns about bulging inventories, traders pointed to soaring U.S. oil output, which is up more than 10 percent since mid-2016 to 9.3 million bpd <C-OUT-T-EIA>, almost matching output of top producers Russia and Saudi Arabia.

The market is awaiting weekly data at about 1 p.m. on the U.S. oil drilling rig count, which has risen for 15 straight weeks. (Additional eporting by Dmitry Zhdannikov in London and Henning Gloystein, Mark Tay and Roslan Khasawneh in Singapore; Editing by Marguerita Choy and David Goodman)