Oil Trades Near One-Week High; Goldman Sees Demand Gain

Oil rose to its highest level in a week in New York after the American Petroleum Institute said crude inventories fell in the U.S., the world’s biggest consumer of the commodity.

U.S. stockpiles decreased by 985,000 barrels last week, the industry-funded API said. An Energy Department report today is forecast to show a gain of 2.8 million barrels. Goldman Sachs Group Inc. said crude prices will rise as demand growth outpaces production capacity and that increased output by Saudi Arabia, the biggest producer in the Organization of Petroleum Exporting Countries, has left the group’s spare capacity at less than 1 million barrels a day.