UPDATE: WTI ends week up 8.3 percent

June contracts for West Texas Intermediate crude oil were at $125.96 per barrel, a gain of $2.27 on the day and up 8.3 percent for the week, at the end of floor trade on the New York Mercantile Exchange on Friday after going as high as a new record $126.20 per gallon earlier in the session.

Besides concerns about a possible US stand-off with Venezuela over reports that President Hugo Chavez has offered to arm militants whose aim is to overthrow the Colombian government that could result in a cut-off of Venezuelan oil sales to the US, prices rose on new violence in Lebanon on fears that the Hezbollah attacks on the pro-Western government there could spread regionally.

There were rumors, denied by some member nations, that the Organization of Petroleum Exporting Countries could meet before its next scheduled meeting in September to consider raising production quotas if prices keep going up.

In addition to the new record for crude oil prices, Nymex June gasoline touched a new record high at $3.2038 per gallon before sliding back slightly to end 6 cents higher at $3.2012 per gallon, while heating oil also rose to a record $3.65 per gallon before closing up 12 cents at $3.636 per gallon.