NEW YORK (Bloomberg) — Crude oil rose above $104 a barrel to a record in New York after Opec gave no indication it will increase production, US fuel inventories declined and Venezuela sent tanks to its border with Colombia.

The Organisation of Petroleum Exporting Countries agreed to maintain production targets at a meeting today in Vienna. US supplies fell for the first time in eight weeks, the Energy Department said. Venezuela activated the country's navy and air force in addition to 10 tank battalions being mobilised.

"Venezuela is sending troops to the Colombian border and everyone is a afraid that things will escalate," said Adam Sieminski, Deutsche Bank's chief energy economist in New York. "Analogies with Kuwait in 1990 are being made. As if that's not bad enough, crude inventories fell more than three million barrels when they were supposed to rise."

Crude oil for April delivery rose $4.46, or 4.5 percent, to $103.98 a barrel at 12.48 p.m. on the New York Mercantile Exchange. Futures touched $104.56 a barrel, the highest since trading began in 1983. Prices are up 73 percent from a year ago.

Brent crude for April settlement rose $3.64, or 3.7 percent, to $101.16 a barrel on London's ICE Futures Europe exchange. Futures reached a record $102.29 a barrel on March 3. On October 15, prices passed the previous all-time inflation- adjusted record reached in 1981 when Iran cut oil exports. The cost of imported oil used by US refiners averaged $39 a barrel in February 1981, according to the Energy Department, or $92.50 in today's dollars.

"Opec decided not to change production but there were comments that raised concerns, helping to push prices higher," said Rachel Ziemba an analyst of RGE Monitor, an online economic research company in New York. "The Opec communiqué and oil-minister statements raise the possibility that even if supplies aren't tight, that might not be the case in the future."

Saudi Arabian Oil Minister Ali al-Naimi, who sets policy in the world's largest oil exporter, said earlier that supply and demand are stable. Naimi said that Opec's aim was to keep stockpiles near the five-year average.

"While the Opec agreement was expected, al-Naimi did say a couple things that are boosting the market," said Brad Samples, commodity analyst for Summit Energy Inc. in Louisville, Kentucky. "He said Opec doesn't want inventories to rise above the five- year average, which indicates they'll have to manage supply soon. Al-Naimi also said he doesn't sense that demand is weakening."

US crude-oil inventories in the week ended February 22 were seven percent above the five-year average for the period, the Energy Department said last week.

Opec will hold its next scheduled meeting on September 9, and may call an emergency meeting before then, the group said after today's meeting.

"I think it's a mistake to have your biggest customer's economy slowing down as a result of high energy prices," President George W. Bush said yesterday.

Gasoline for April delivery rose 6.49 cents, or 2.6 percent, to $2.594 a gallon in New York. Futures touched $2.7325 on March 3, an intraday record for gasoline to be blended with ethanol, known as RBOB, which began trading in October 2005.

Venezuela President Hugo Chavez on Monday ordered the battalions to the border in response to a Colombian air raid against a guerrilla camp in Ecuador the day before. Venezuela and Ecuador are the only members of Opec in the Western Hemisphere.