Crude oil was little changed after closing at a record $78 a barrel in New York on speculation demand will outpace supply as refiners increase production.

U.S. oil stockpiles probably fell for a fourth week, according to a survey of 14 analysts by Bloomberg News before a government report later today. Refiners may have raised operating rates to meet gasoline demand, the survey showed. Global oil demand will climb 1.7 percent in 2008, showing no sign of slowing because of high prices, Deutsche Bank AG said.

``Two things are coming together,'' said Tobin Gorey, commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. ``We're getting the strong global demand, and now the refining rates in the U.S. are starting to pick up and running down inventories there.''

Crude oil for September delivery was at $77.86 a barrel, down 35 cents, in after-hours electronic trading on the New York Mercantile Exchange at 12:51 p.m. Singapore time.

Yesterday, the contract rose $1.38, or 1.8 percent, to $78.21, the highest close since trading began in 1983. Futures touched $78.28, the highest intraday price since a record $78.40 on July 14, 2006.

``The whole consumption picture doesn't seem to be being affected by issues such as oil prices, pollution concerns, interest rate concerns or housing problems,'' said Andrew Harrington, a commodities analyst at Australia & New Zealand Banking Group Ltd. in Sydney. ``It looks like $70 oil is going to stick around.''

In London, Brent crude oil for September settlement was at $76.70 a barrel, down 35 cents, in electronic trading on the ICE futures exchange at 1:05 p.m. Singapore time. It rose $1.31, or 1.7 percent, yesterday. Brent touched a record $78.64 on Aug. 7, 2006, after BP Plc closed Alaska's Prudhoe Bay oil field.

Brent, West Texas

Brent, which is produced in the North Sea, lost its premium over West Texas Intermediate blend, the U.S. benchmark, last week. Brent had been higher than New York-traded WTI for most of this year, as crude-oil supplies rose at Cushing, Oklahoma, the delivery point for Nymex futures.

The U.S. grade traded at a record $6.54 a barrel discount to Brent on May 24, based on closing futures prices.

Oil demand in China may increase 5.6 percent in 2008 with the potential for further gains because of additional energy use prompted by the Beijing Olympic Games, Deutsche Bank analyst Adam Sieminski wrote in a July 27 report. China's daily oil use will grow by 430,000 barrels a day to 8 million barrels next year, Sieminski wrote.

Oil Inventories

U.S. crude-oil inventories probably fell 1.13 million barrels in the week ended July 27 from 351 million barrels the prior week, according to the median of responses by 14 analysts before an Energy Department report on stockpiles due at 10:30 a.m. in Washington. Eleven of the analysts expected a decline and three a gain.

Refineries may have operated at 92 percent of capacity, up 0.3 percentage point from the week before, according to the survey. U.S. refiners increased operating rates the five previous weeks to meet demand for motor fuel, which peaks in the summer months.

``The switch in the market is that it's becoming more about the crude rather than some product related issues,'' said Commonwealth Bank's Gorey. ``We're now starting to trade post- summer crude and post-summer products.''

Gasoline for August delivery rose 5.52 cents, or 2.7 percent, to expire at $2.1408 a gallon on Nymex. The September contract was unchanged at $2.1059 a gallon.

Total Refinery

The Energy Department report may show that gasoline inventories gained 125,000 barrels last week, according to the Bloomberg News survey of analysts.

Heating oil for September delivery was at $2.1186 a gallon after rising 4 cents, or 1.9 percent, to $2.1232 yesterday.

Total SA, Europe's third-largest oil company, shut a sulfur-removal unit at its 240,000 barrel-a-day Port Arthur, Texas, refinery and reduced rates to a ``minimum'' on other units including a fluid catalytic cracker, according to a report on a state-run Web site.

Besides the cracker, which is central to gasoline production, rates were also reduced on a distillate hydrotreater, which upgrades distillate fuels into jet fuel and diesel.

To contact the reporters on this story: Christian Schmollinger