Oil finally retreats

Oil fell more than three dollars overnight from its record high in a broad commodity sell-off sparked by uncertainty over how aggressive the US Federal Reserve will be in fueling economic growth with further interest rate cuts.

Profit-taking was encouraged by an expected recovery to Mexican oil exports disrupted since last week by foul weather, and forecasts that a government report to be released today would show an increase in US crude stocks.

US oil futures settled down US$3.15 to US$90.38 a barrel after hitting a record high of US$93.80 in the previous session.

- REUTERS