June 11 (Bloomberg) -- Crude oil rose in New York on speculation U.S. inventories dropped for a fourth week, raising concern supply may fall short during the summer driving season.

Crude stockpiles probably declined last week by 1.5 million barrels, according to a Bloomberg survey. Inventories have lost 19 million barrels since the week ended May 9. President George W. Bush said today ``all options remain on the table'' to stop Iran developing nuclear weapons and threatened stronger sanctions against OPEC's second-largest oil producer.

``The crude data is definitely below the five-year average and if it drops again this will be a rather bullish thing,'' said Hannes Loacker, an analyst at Raiffeisen Zentralbank Oesterreich in Vienna.

Crude oil for July delivery climbed as much as $3.29, or 2.5 percent, to $134.60 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It traded at $133.61 at 1:39 p.m. London time.

Prices also rose after China, the world's second-largest crude consumer, said it imported 25 percent more oil in May to assist repairs in southwestern regions struck by an earthquake. Imports expanded to 16.2 million metric tons, or about 3.8 million barrels a day, the Beijing-based Customs General Administration of China said on its Web site today.

``In terms of bullish fundamentals, it's really about China and India, which account for 70 percent of global demand growth,'' Loacker said.

Oil Output Falls

Global oil production fell for the first time in five years in 2007 and reserves also declined as prices rose to records, BP Plc said today in its annual Statistical Review of World Energy. Output dropped 0.2 percent to 81.533 million barrels a day last year, it said.

Oil prices slumped 5.2 percent in the past two sessions, the biggest two-day decline in 11 weeks. Futures have doubled in 12 months, and investors looking to hedge against the dollar's drop helped push oil, gold and corn to records this year.

Yesterday, oil fell $3.04, or 2.3 percent, to settle at $131.31 a barrel. Prices reached a record $139.12 on June 6 on a weaker dollar and threats to supply.

Brent crude oil for July settlement gained as much as $3.13, or 2.4 percent, to $134.15 a barrel on London's ICE Futures Europe exchange. It was at $132.87 at 1:39 p.m. local time.

U.S. gasoline demand fell 3.8 percent last week, a sign record pump prices are prompting drivers to spend less time on the road, MasterCard Inc. said yesterday.

Record Gasoline

AAA, the country's largest motoring club, said yesterday on its Web site the average U.S. pump price for regular gasoline rose 2 cents to a record $4.043 a gallon. The price exceeded $4 a gallon for the first time over the weekend.

Saudi Arabia is inviting energy officials from the Organization of Petroleum Exporting Countries, oil-consuming nations and oil-trading banks to a meeting to discuss record prices in Jeddah, Saudi Arabia, on June 22.

`` We have a lot of oil in the market,'' OPEC Secretary- General Abdalla El-Badri said in a Bloomberg Television interview today. `` We don't see any shortage. We don't have customers knocking on the door because they need more oil.''

Eni SpA declared ``force majeure'' on exports from its Brass River field in Nigeria after an oil spill, Reuters reported, citing an unidentified spokesman. Force majeure allows companies to renege on contracts citing circumstances beyond their control. Nigeria, Africa's biggest oil producer, has been losing about a fifth of its output through militant attacks since early 2006.

The U.S. Energy Department is scheduled to release its weekly report on inventories tomorrow at 10:35 a.m. in Washington.

``Inventories are adequate, not ample, but adequate, not tight,'' Gareth Lewis-Davis, research analyst at Dresdner Kleinwort Group Ltd. said in a Bloomberg Television interview. ``I see inventories increasing across the rest of this year, so I therefore see prices falling from these levels.''

To contact the reporters on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net; Grant Smith in London at gsmith52@bloomberg.net

Last Updated: June 11, 2008 08:41 EDT