Crude oil fell the most in almost seven years, leading commodities including copper and corn lower, after the U.S. House of Representatives rejected a $700 billion financial-rescue plan.
Oil slumped more than $11, helping send the S&P Goldman Sachs Commodity Index to a 6 percent drop, after the House voted 228 to 205 against the measure. Commodities also dropped after the pound fell the most against the dollar in 15 years and the euro weakened as European banks were bailed out.
Crude oil for November delivery fell $10.63, or 9.9 percent, to $96.26 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange, the biggest percentage drop since Nov. 15, 2001. Futures dropped as much as $11.85, or 11 percent, to $95.04.
Prices are down 35 percent from the record $147.27 a barrel reached on July 11 and are heading for the first quarterly drop since the end of 2006.
Gasoline for October delivery declined 28.94 cents, or 11 percent, to $2.3757 a gallon in New York, the biggest drop since the ethanol-based contract began trading in October 2005. Heating oil dropped 24.49 cents, or 8.2 percent, to $2.75 a gallon.
The Goldman index of 24 commodities fell 6 percent to 617.675. The index is down 31 percent from a record 893.859 reached on July 3.