Crude oil rose to a record above $134 a as U.S. stockpiles unexpectedly dropped and banks raised price forecasts because of supply constraints and demand growth, reports Bloomberg News.

Inventories fell 5.32 million barrels to 320.4 million last week, the biggest drop in four months, the Energy Department said. Oil for December 2016 delivery rose more than $20 a barrel, or 17 percent, after Goldman Sachs Group Inc. on May 16 raised its outlook to $141 a barrel for the second-half of the year.

``What we have here is a situation where essentially higher prices aren't generating any more supply,'' Paul Sankey, an analyst at Deutsche Bank Securities in New York, said in an interview with Bloomberg. ``What we have to do is keep pricing the commodity higher until demand starts falling,'' which ``is around $150 a barrel.''

Crude oil for July delivery rose $1, or 0.8%, to $134.17 a barrel in Sydney in after-hours trading on the New York Mercantile Exchange. It touched $134.42, the highest since trading began in 1983. Prices have more than doubled in the past year.

Gasoline futures advanced to a record $3.4234 a gallon. Gasoline for June delivery rose 2.15 cents, or 0.6 percent, to $3.4180 a gallon at 8:25 a.m. Sydney time. Yesterday, it rose 9.21 cents, or 2.8 percent, to settle at $3.3965 a gallon.