Energy Sector Roundup: Oil hits new high above $126

Oil tops $126 a barrel for first time

Oil prices surged past $126 a barrel for the first time, capping a week of record highs, amid concerns that a possible confrontation between the U.S. and Venezuela could cut exports from the key South American oil producer.

Light, sweet crude for June delivery vaulted to a new record of $126.20 on the New York Mercantile Exchange before retreating to settle up $2.27 at a record $125.96. Prices finished the week nearly $10 higher than where they began.

Prices at the pump also set new highs. The national average price of a gallon of regular gas jumped 2.6 cents overnight to a record $3.671 a gallon, according to a survey of stations by AAA and the Oil Price Information Service. Diesel prices also rose.

In other Nymex trading Friday, June gasoline futures rose 6.34 cents to settle at a record $3.2012 a gallon after rising to their own record of $3.2038. Heating oil for June delivery rose 12.62 cents to settle at $3.636 on the Nymex after earlier setting a trading record of $3.6524. Natural gas futures rose 27.4 cents to settle at $11.537 per 1,000 cubic feet after earlier hitting a record $11.569.

Oil executives see crude prices falling by year's end

Despite oil's recent string of record highs, a new survey suggests many oil and gas industry executives expect crude prices to fall significantly by the end of the year.

In a KPMG LLP survey of 372 petroleum industry executives, 55 percent said they believe oil prices will drop below $100 a barrel by the end of the year. Twenty-one percent of respondents predicted a barrel of oil will end the year between $101 and $110, while 15 percent forecast the year-end price to be between $111 and $120 a barrel.

Only 9 percent said they expect prices to stay above $120 a barrel through the end of the year.