UPDATE 9-Oil rises over 1% as demand hopes bolster sentiment

* Surge in coronavirus cases hits India's April fuel demand
* OPEC boosts output in April, OPEC+ increase takes effect
in May
* Iran nuclear talks in focus

(Updates prices)
By Stephanie Kelly
NEW YORK, May 3 (Reuters) - Oil rose more than 1% on Monday
as Chinese economic figures and U.S. vaccination rate pointed to
a strong rebound in demand in the world's two largest economies.
Investors remain wary, however, over record-breaking
infection rates in India, the third-largest fuel importer
worldwide, along with higher OPEC+ oil supply.
Brent crude LCOc1 rose 74 cents, or 1.1%, to $67.50 a
barrel by 1:30 p.m. EDT (1730 GMT). U.S. West Texas Intermediate
CLc1 rose 80 cents, or 1.3%, to $64.38 a barrel.
The United States and China, the world's top two oil
consumers, are expected to drive a recovery in demand from the
coronavirus pandemic.
"Even as COVID-19 cases hit record levels this week, oil
prices have moved higher on growing vaccination numbers in
developed markets," a BofA Global Research report said. "Recent
data points to the high effectiveness of vaccines at preventing
infections and fatalities."
About a third of U.S. residents have been fully vaccinated,
Reuters' coronavirus tracker https://graphics.reuters.com/world-coronavirus-tracker-and-maps/vaccination-rollout-and-access
showed.
Meanwhile, Chinese crude imports averaged a seasonal record
in February and March from increased car sales, a recovery in
local travel and a strong industrial backdrop, BofA Global
Research said. Still, parts of the world such as India are seeing rising
coronavirus cases. India on Monday reported more than 300,000
new coronavirus cases for a 12th straight day. The new wave of
the virus has already led to a drop in fuel sales in April.
"India jitters are currently stopping oil prices from rising
further," said Rystad Energy analyst Louise Dickson.
Brent has rallied almost 30% this year, recovering from last
year's historic lows thanks to record supply cuts by the
Organization of the Petroleum Exporting Countries and its
allies, together known as OPEC+.
However, OPEC+ decided last week to stick to a plan to boost
supply slightly from May 1 and OPEC's production climbed in
April, led by a boost from Iran, a Reuters survey found.
OPEC/O
Tehran and world powers are holding talks to revive the 2015
nuclear deal that could add to global oil supplies should an
agreement be reached. Iran's chief nuclear negotiator on
Saturday said that Tehran expects U.S. sanctions on oil, banks
and most individuals and institutions to be lifted. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Reuters Coronavirus Tracker https://graphics.reuters.com/world-coronavirus-tracker-and-maps/vaccination-rollout-and-access/
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