Oil Gains First Day in Seven; Goldman Sees Tighter Market

Oil rose for the first time in seven days in New York after China pledged to boost the nation’s economy and Goldman Sachs Group Inc. said the balance between supply and demand of crude is tightening.

Futures gained as much as 0.7 percent after settling at the lowest level in almost seven months on May 18. The extent of oil’s decline was unwarranted, Goldman said in a report. China will focus more on bolstering economic growth, the official Xinhua News Agency reported yesterday, citing Premier Wen Jiabao. Prices slid earlier after Saudi Arabia’s output in March climbed to the second-highest level in at least 31 years before a European embargo on Iran that starts in July. Crude’s relative strength index remained below 30, signaling it may be oversold.