UPDATE 6-Oil prices mixed; Brent still set for weekly gain

* Market bolstered by Saudi halt to shipments

* Reduced trade tensions also support

* Russia says no talks to raise output by over 1 mln bpd

* Coming up: Baker Hughes rig count data at 1 p.m. EDT (Updates prices, market activity, adds commentary; changes byline, dateline, previous LONDON)

NEW YORK, July 27 (Reuters) - Oil prices were mixed on Friday, with global benchmark Brent set for its first weekly increase in four weeks after trade tensions eased and Saudi Arabia closed a key crude oil shipping lane after attacks on two large vessels.

Brent crude futures rose eight cents to $74.62 a barrel by 11:23 a.m. EDT (1523 GMT), but were on track for a 2.3 percent weekly increase.

A breakthrough in U.S.-EU trade talks lent support to oil prices this week. U.S. President Donald Trump and Jean-Claude Juncker, president of the European Commission, reached a surprise agreement on Wednesday that alleviated the risk of an immediate trade war.

U.S. West Texas Intermediate (WTI) crude futures fell 37 cents to $69.24 a barrel, and were set for a fourth week of declines, falling 1.5 percent.

Volume was light, with less than 270,000 U.S. crude contracts changing hands as of 11:23 a.m. EST, compared with a 10-month daily average of about 586,000 contracts.

Russian energy minister Alexander Novak said on Friday the market remained volatile and responded to verbal interventions, adding that the market had priced in risks related to U.S. sanctions against Iran.

He said the Organization of the Petroleum Exporting Countries and its allies were not discussing an option to boost production by more than 1 million barrels per day.

OPEC and other producers led by Russia agreed last month to ease production curbs. The deal effectively increases combined output by 1 million bpd, with Russia's share at 200,000 bpd.

Market participants awaited U.S. rig count data from Baker Hughes that was set to be released at 1:00 p.m. EDT (1700 GMT). The data is seen as an indication of future U.S. production.

Saudi Arabia earlier in the week said it was suspending oil shipments through the Red Sea's Bab al-Mandeb strait, one of the world's most important tanker routes, after Yemen's Iran-aligned Houthis attacked two ships in the waterway.

Any move to block the strait would virtually halt oil shipments through Egypt's Suez Canal and the SUMED crude pipeline linking the Red Sea and Mediterranean.

Tom Essaye, president of Sevens Report Research in Palm Beach Gardens, Florida said he does not see the decision changing larger supply-demand fundamentals.

An estimated 4.8 million bpd of crude oil and refined products flowed through the Bab al-Mandeb strait in 2016 towards Europe, the United States and Asia, according to the U.S. Energy Information Administration.

(Reporting by Stephanie Kelly in New York, Ahmad Ghaddar in London and Aaron Sheldrick in Tokyo Editing by David Goodman and Edmund Blair)