Aug. 20 (Bloomberg) -- Crude oil rose for a second day before a weekly U.S. government report on stockpiles that may show gasoline supplies shrank for a fourth week in the world's largest energy user.

U.S. supplies of gasoline probably fell by 3 million barrels last week from 202.8 million barrels the previous week, according to a Bloomberg survey. Goldman Sachs Group Inc. repeated its forecast that prices will top last month's $147.27 record this year as emerging market demand strains global supplies.

``The forecasts are pointing to a decline of as much as 3 million barrels in gasoline supplies while we remain in the peak driving season,'' said Robert Montefusco, a broker at Sucden (U.K.) Ltd. in London. ``On top of that, Goldman are still bullish and some OPEC members are calling for cuts at the next meeting.''

Crude oil for September delivery rose as much as $2.34 a barrel or 2 percent to $116.87 a barrel, on the New York Mercantile Exchange, trading for $116.21 at 1:30 p.m. London time.

Venezuela, South America's biggest oil producer, will propose that the Organization of Petroleum Exporting Countries cut oil output quotas if prices continue to fall, Energy and Oil Minister Rafael Ramirez said yesterday.

OPEC, which is responsible for more than 40 percent of global oil production, is scheduled to meet next on Sept. 9 in Vienna. Oil prices will rebound to $149 a barrel by the end of the year as supply growth struggles to keep pace with buoyant emerging market demand.

The Energy Department is scheduled to release its report at 10:35 a.m. in Washington. Inventories of crude oil probably rose 1 million barrels in the week ended Aug. 15 from 296.5 million the previous week, a Bloomberg survey shows.

The BP-led Baku-Tblisi-Ceyhan pipeline, which transports oil from Azerbaijan to the Mediterranean, plans to resume tanker loadings next week, the pipe's operating company said today. Exporters of Azeri oil have been unable to use the 1,100-mile link through Georgia and Turkey since Aug. 5, when a fire engulfed the pipeline in Erzincan province in northeastern Turkey.

To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net

Last Updated: August 20, 2008 08:45 EDT