OIL $126 BARREL

NEW YORK (AP) -- Oil rose above $126 a barrel for the first time Friday, bringing its advance this week to nearly $10, as investors questioned whether a possible confrontation between the U.S. and Venezuela could cut exports from the OPEC member. Gas prices, meanwhile, rose above an average $3.67 a gallon at the pump, following oil's recent path higher.
On Friday, The Wall Street Journal published a report that suggested closer ties between Venezuelan President Hugo Chavez and rebels attempting to overthrow Colombia's government. Chavez has been linked to Colombian rebels previously, but the paper reported it had reviewed computer files indicating concrete offers by Venezuela's leader to arm guerillas. That appears to heighten the chances that the U.S. could impose sanctions on one of its biggest oil suppliers.

"If we put on sanctions, I'm sure Chavez would threaten to cut off our oil supply," said Phil Flynn, an analyst at Alaron Trading Corp. "Obviously that would have a major impact on oil prices."

Light, sweet crude for June delivery vaulted to a new record of $126.25 on the New York Mercantile Exchange before retreating slightly to settle up $2.27 at a record $125.96. Oil futures set new records for the fifth straight day, and ended the week up $9.64, or 8.3 percent.

Oil prices leapt above $72 a barrel

WASHINGTON - Oil prices leapt above $72 a barrel Wednesday, settling at a record high for the third straight day after a government report showed shrinking U.S. gasoline supplies and traders fretted about nuclear tensions between Iran and the international community.
Supply constraints in Iraq, Nigeria and the Gulf of Mexico are also pushing oil prices higher, and analysts are predicting more pain at the pump this summer for motorists, who so far appear to be only lightly tapping the brakes on demand.
Light sweet crude for May delivery climbed as high as $72.40 a barrel, before settling at $72.17 on the New York Mercantile Exchange, an increase of 82 cents from the previous day. The contract had risen as high as $71.60 on Tuesday.
Oil futures contracts through July 2009 are now trading above $70 a barrel. “In effect, the market is saying this is going to be with us for a while,” said A.G. Edwards & Sons commodity analyst Bill O’Grady.
In its weekly report, the U.S. Energy Department said the nation’s supply of gasoline shrank by a larger-than-expected 5.4 million barrels last week to 202.5 million barrels. It was the seventh straight weekly decline, leaving inventories 4.6 percent below year ago levels.

Global warming

Global warming refers to an average increase in the Earth's temperature, which in turn causes changes in climate. A warmer Earth may lead to changes in rainfall patterns, a rise in sea level, and a wide range of impacts on plants, wildlife, and humans. When scientists talk about the issue of climate change, their concern is about global warming caused by human activities.

Earth has warmed by about 1ºF over the past 100 years. But why? And how? Well, scientists are not exactly sure. The Earth could be getting warmer on its own, but many of the world's leading climate scientists think that things people do are helping to make the Earth warmer.