Meanwhile, a political and economic crisis in Venezuela combined with US sanctions against Venezuela as well as Iran, have further tightened oil markets.
The U.S. bank said January global crude oil demand growth was "nearly 2.0 million barrels per day, with strength visible in both emerging markets and developed economies".
Brent crude hit a 2019 peak of $68.14 per barrel before falling to $67.93 by 1250 GMT, up $0.38 or 0.56% from Wednesday's close.
Oil prices have risen since the beginning of this year thanks to supply cuts led by OPEC.
The WTI Crude Oil market rallied significantly during the trading session on Wednesday, reaching towards fresh, new highs, at least as far as recent trading is concerned.
Gasoline inventories on the other hand did eke out a small increase of 0.4m barrels.
Tight Market Fears Cause Crude to Climb Again - with $60-Plus Viewed as Inevitable
Forecasts slowed USA production to a record of 13 million barrels per day (bps) until the third quarter of 2020, instead of the second quarter of previous forecasts.
Goldman said "current fundamentals will tighten physical markets further", driving up spot Brent crude futures above $70 per barrel "as supply losses continue (and) demand growth beats low consensus expectations".
While the overall trend that's been pushing prices higher comes from the reduced output from OPEC countries and their allies, on a more short-term, day-to-day basis these prices fluctuate largely based on new information related to the U.S.'s domestic supplies and output.
"While oil demand is expected to grow at a moderate pace in 2019, it is still well below the strong growth expected in the non-OPEC supply forecast for this year", OPEC said in the report. Since then, crude oil imports have increased slightly, averaging 7.7 million bpd in 2018.
Raw stocks at the Kacheng delivery office in Oklahoma fell by 1.1 million barrels, the institute said. Petrol stocks fell by 5.8 million barrels, compared to analysts' forecasts in a 2.5 million barrel survey at Reuters.
The EIA now expects US oil production to average 12.3 million barrels per day this year and 13.0 million barrels per day next year.
Data from the Petroleum Institute showed that distillate stocks, including diesel and fuel oil, increased by 195,000 barrels, compared to a forecast of 1.9 million barrels.More news: The US urges Germany to reject Huawei's bid for its 5G network
More news: UNSC to declare Masood Azhar a Global Terrorist
More news: The Stars Behind College Admissions Scandal Are Getting Roasted By Fellow Celebs