Crude oil declines after touching record highs

Crude oil prices were lower Friday, but not before rising to record highs first as worries continued over political tensions in South America.

West Texas Intermediate crude for April delivery was down $1.27 to $104.20 per barrel at last report from the New York Mercantile Exchange, while Brent crude dropped 24 cents to $102.37 per barrel.

Earlier in the session, Brent was at a record $103.98 per barrel, while WTI jumped to $106.54 per barrel in volatile trade.

The declines came after the US Labor Department reported that the United States economy lost 63,000 jobs in February.

Earlier support for prices came from continuing worries about conflict between Venezuela and Colombia, as the back and forth between the two nations this week included threats and Venezuelan troops stationed along its common border with Colombia, as well as a rebel attack that closed a Colombian oil pipeline in retaliation for an earlier raid by Colombia into Ecuador.

Also of concern was a prediction from Goldman Sachs that oil could average $110 per barrel by 2010 and that $200 per barrel crude oil is a possibility.

Nymex April gasoline added nearly 3 cents to $2.67 per gallon while heating oil dropped a cent to $2.96 per gallon while natural gas was 6.5 cents higher to $9.80 per 1,000 cubic feet.