UPDATE 4-Oil falls $3 as China to raise fuel prices

                                
 * Falls to $133 on news China to raise fuel prices
                                
 * Shell shuts 220,000 bpd oil output in Nigeria
                                
 * Goldman Sachs raises oil price forecast
                                
 
                                
  (Updates throughout)
                                
 By Margaret Orgill
                                
 LONDON, June 19 (Reuters) - Oil fell $3 to $133 a barrel on
Thursday on news that China will raise retail gasoline and
diesel prices for the first time in 8 months to help refineries
recoup losses from record oil prices.
                                
 Demand from China has been one of the main factors driving
oil prices to a record near $140.
                                
  China is to increase fuel prices by 1,000 yuan ($145.50) a
tonne from Friday, industry sources told Reuters.
                                
  U.S. crude <CLc1> fell $3 to $133.68 a barrel before
firming a touch to stand $2.02 lower at $134.66 at 1343 GMT.
                                
 London's Brent crude <LCOc1> was $2.11 lower at $134.33
                                
 Earlier, oil had rallied to over $137 after rebels from
Nigeria's oil producing Niger Delta warned oil and gas tankers
to avoid the region or risk being attacked.
                                
 The rebel Movemnet for the Emancipation of the Niger Delta
also said it might carry out further attacks on oil facilities
after gunmen caused the shutdown of production at the Bonga
field earlier on Thursday. [ID:nL19434240]
                                
  Bongas pumps an average of around 220,000 barrels per day.
                                
  Nigeria is already producing about 20 percent below its
potential, contributing to the rally in oil prices to a record
high near $140 earlier in the week.
                                
 Its output has suffered from a violent campaign of sabotage
by militants in its southern Niger Delta, the heartland of its
oil industry.
                                
 News that Goldman Sachs has raised its oil price forecasts
further on continued supply tightness, had supported prices.
                                
 Oil would average $117 a barrel this year, compared with its
previous estimate of $108, and price would average $140 next
year, Goldman Sachs said.
                                
 Traders say the market is cautious ahead of the emergency
meeting this weekend between producers and consumers in Saudi
Arabia.
                                
 The White House said on Wednesday it was not expecting Saudi
Arabia to announce an output increase in Jeddah.
                                
 However, some investors said the world's top oil producer
would reassure that it was willing to increase output to bring
down prices.
                                
 "We may not see much long-side accumulation prior to such an
important event," MF Global said in its research note.
                                
 "We believe that the Saudis will strongly indicate that they
will release more oil onto the markets."
 (Reporting by Chua Baizhen in Singapore and Ikuko Kao in
London; editing by James Jukwey)