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Oil Rises to Six-Month High as Goldman Sees Demand Above Output

  • Market moved to deficit in May; surplus to return next year
  • Nigerian volumes down about 30 percent after militant attacks
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Oil Advances as Goldman Forecasts a Deficit

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Oil rose to a six-month high as Goldman Sachs Group Inc. said the market moved into a deficit earlier than expected following supply disruptions in Nigeria and an increase in demand.

Futures climbed 3.3 percent in New York. The shift to a supply deficit this month came one quarter earlier than forecast, Goldman Sachs said in a report. The bank raised its price forecasts, while projecting a return to surplus early next year. Militant attacks and pipeline outages have cut Nigerian volumes by at least 30 percent, its petroleum minister said last week.