New York's main oil contract, light sweet crude for delivery in April, plummeted $US4.22 to $US105.20 per barrel. The contract, which had hit a record peak of $US111.80 on Tuesday, expires at the close.
Brent North Sea crude for May sank $US4.27 to $US101.29. It struck an all-time peak of $US107.97 on Tuesday.
And on the London Bullion Market, the price of gold tumbled as low as $US941.48 per ounce. The precious metal had forged an historic pinnacle of $US10037.70 on Tuesday.
Earlier this week, commodity prices jumped to record heights as they were energised by the weak dollar and as investors sought safe refuge for their cash from volatile world stock markets.
At the same time, however, traders are very worried that the global credit squeeze, which erupted last August and has yet to run its course, could have a considerable negative impact on commodity demand going forward.
"We have this constant struggle between people wanting to buy oil as perceived safe haven, and weak stock markets which mean lower demand for oil going forward," said Bache Financial trader Christopher Bellew.
"Personally I think we (are) more likely to see prices fall, but it's all very volatile, so who knows."
Meanwhile, the US Energy Information Administration said overnight that American crude stockpiles rose by just 200,000 barrels last week. That was far less than market expectations for a gain of 2.3 million barrels.
"The data was a tad bullish... but I wouldn't say it's earth-shattering again, because sentiment has changed," said MF Global analyst Mike Fitzpatrick.
"Previously the market was willing to discount negative news (with higher oil prices) ... now sentiment has gone the other way."
So far this week, the oil market has faced a roller coaster ride.
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