UPDATE 8-Oil gains more than 1% on fuel demand optimism

* U.S. distillate inventories slump, refining ramps up -EIA
* OPEC+ sticks to output rise, sees strong demand recovery
* Goldman sees surge in oil demand over next six months
* India's COVID-19 death toll surges past 200,000

(Updates with settlement prices, adds commentary)
By Stephanie Kelly
NEW YORK, April 28 (Reuters) - Crude prices rose more than
1% on Wednesday, after U.S. distillate inventories posted a
large drawdown and refiners ramped up activity to the highest in
over a year, boosting hopes for rising fuel demand in the
world's top oil consumer.
OPEC+, comprising of the Organization of the Petroleum
Exporting Countries and its allies, on Tuesday decided to stick
to plans for a phased easing of oil production restrictions from
May to July, an indication that the group is confident that
global demand will recovery. "The market is supported by the general belief that the
COVID endgame is in sight," said Tamas Varga, analyst at PVM Oil
associates.
Brent crude LCOc1 futures gained 85 cents, or 1.3%, to
settle at $67.27 a barrel. U.S. West Texas Intermediate (WTI)
crude CLc1 futures rose 92 cents, or 1.5%, to settle at $63.86
a barrel.
U.S. crude inventories USOILC=ECI rose by 90,000 barrels
last week, the Energy Information Administration said, much
smaller than analysts' forecasts for a 659,000-barrel build.
EIA/S
Distillate stockpiles, which include heating oil and diesel
fuel, fell by 3.3 million barrels in the week, and refining
rates rose to 85.4% of capacity, their highest since March 2020.
"Between planting season and online truck deliveries, you
have a nice number in the diesel," said Bob Yawger, director of
energy futures at Mizuho. "Planting season is doing wonders for
the distillate market."
In a report by OPEC+ experts earlier in the week, the group
forecast global oil demand in 2021 would grow by 6 million
barrels per day, after demand plunged by 9.5 million bpd last
year amid the pandemic. U.S. bank Goldman Sachs said it expected the biggest jump in
oil demand in history at 5.2 million bpd over the next six
months, as vaccination campaigns accelerate in Europe and travel
demand climbs.
Goldman said easing international travel restrictions in May
would hike jet fuel demand by 1.5 million bpd.
In India, the world's third-largest oil consumer, the
COVID-19 death toll surged past 200,000 and infections have
climbed by more than 300,000 cases a day for a week.