Oil falls from record above $100

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U.S crude slid 62 cents to $99.39 a barrel by 7:52 a.m. (British time), after investors paused for thought following Tuesday's leap of nearly 5 percent, or $4.51 a barrel, the biggest-ever daily gain. The contract reached a new peak of $100.10 a day ago, 1 cent beyond its previous January 3 high.

London Brent crude fell 68 cents to $97.88 a barrel.

"It's just a bit of a correction. The market is settling down after such a massive move last night," said Peter McGuire, managing director of Commodity Warrants Australia.

Concerns that the Organization of the Petroleum Exporting Countries will hold or even cut output when it meets on March 5 as well as uncertainty about Venezuelan and Nigerian supplies, sent prices to triple digits. But Libya's top oil official and OPEC sources said on Tuesday the oil cartel would find it hard to cut oil output because of rising prices.

News that Nigerian oil delta rebel leader Henry Okah had been shot dead, later debunked by a government spokesman, a rush of speculative investment in oil and commodities, as well as U.S. refinery problems and the row between Venezuela and Exxon Mobil helped lift prices.

The gains came in tandem with record highs for platinum and soybeans as the commodities complex remained in favour among investors seeking shelter from range-bound share markets.

"The rally may be less indicative of narrowly defined energy fundamentals than of fund capital's quest for safe havens and financial hedges against inflation," said Antoine Halff, deputy head of research at brokers Newedge.

While supply concerns have unnerved traders, U.S. inventories still appear healthy, while worries about the economic health of the United States that could erode demand, pushed oil off its record.

U.S. crude oil stocks were expected to have risen for a sixth-straight time last week as imports increased and refinery utilisation held steady, with crude inventories seen to rise by 2.3 million barrels.

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