Crude oil tops $126 per barrel in New York

West Texas Intermediate crude oil for June delivery traded at $124.80 per barrel in late morning trade on the New York Mercantile Exchange on Friday and went as high as a record $126.20 per barrel earlier in the session.

The gains came on concerns that Venezuela could cut exports to the United States if the US imposes sanctions over a reported offer by Venezuelan President Hugo Chavez to arm rebels attempting to overthrow the government of Colombia.

While a cut in exports from the OPEC member would not mean that Venezuelan oil would stop flowing to the US, it would mean an extra link in the supply chain that would add to already soaring oil prices.

Oil prices were also pushed higher by another decline in the US dollar in relation to the euro.

June contracts for Brent crude also saw gains, adding $1.79 to $124.63 per barrel on the ICE Futures Europe exchange in London.