Oil fell in price to a three-month low of $US118 a barrel on Tuesday as demand declines in the United States and Europe.
Prices previously reached a record $US147.27 a barrel on 11 July.
US crude was down $US1.89 at $US119.52 a barrel by 1310 GMT. London Brent crude lost $US2.10 to $US118.58.
Other commodities such as copper, gold and platinum also fell.
Investors awaited the outcome of a Federal Reserve meeting later in the day. The Fed is expected to leave its benchmark interest rate at 2%.