Oil in New York has dropped more than $8 since reaching a record $145.85 a barrel on July 3. Gold, silver, copper and corn also declined. Equities fell in Europe and Asia and U.S. index futures dropped on speculation that financial firms will need more capital to recover from credit-market losses.
Crude oil for August delivery fell $3.56, or 2.5 percent, to $137.81 a barrel at 9:12 a.m. on the New York Mercantile Exchange. Prices are up 89 percent from a year ago.
Oil also fell today as negotiations continued between Iran and western governments over the country's nuclear program. President Mahmoud Ahmadinejad said today he supports the resumption of dialogue to avert confrontation.
Iran has said it may blockade the Strait of Hormuz, the shipping lane for a fifth of the world's crude, if its nuclear facilities are attacked. The country has the second-biggest proved oil reserves and is the second-biggest producer in the Organization of Petroleum Exporting Countries.
Brent crude oil for August settlement declined $3.39, or 2.4 percent, to $138.48 a barrel on London's ICE Futures Europe exchange. Prices climbed to a record $146.69 on July 3.
The UBS Bloomberg Constant Maturity Commodity Index, which tracks 26 raw materials, declined 1.6 percent to 1,637.332 today. Gold dropped for a fourth day.