New York : Crude oil tumbled to a three-month low, leading raw materials lower, on concern that Europe's sovereign-debt crisis will reduce global economic growth and fuel consumption.

The UBS Bloomberg Constant Maturity Commodity Index fell the most in eight months with all 26 prices tracking energy, agriculture and metals closing lower.

Oil fell 3.8 per cent and the euro tumbled after Deutsche Bank AG Chief Executive Officer Josef Ackermann said Greece may not be able to repay its debt. Supplies at Cushing, Oklahoma, the delivery point for New York futures, rose to a record last week, according to the Energy Department.

"The European debt worries are hitting a lot of markets," said Michael Lynch, the president of Strategic Energy & Economic Research in Winchester, Massachusetts. "This, together with rising inventories, especially at Cushing, will continue to weigh on oil."

Oil futures for June delivery fell $2.79 to $71.61 a barrel on the New York Mercantile Exchange, the lowest settlement since February 5. The price declined 4.7 per cent this week.

Austerity measures

Portugal announced austerity measures a day after Spain proposed to reduce its deficit, spurring concern that fiscal tightening in the region will undermine economic growth and derail the global recovery.

The UBS Bloomberg index dropped 2.8 per cent, the most since September 1, to 1,235.03.

Cattle futures plunged the most in almost 15 months on speculation that gains in the dollar may curb US meat exports.

The dollar rose to the highest level in a year against a basket of six major currencies, eroding the appeal of US beef. The US sold 12,700 metric tonnes of beef to overseas buyers in the week ended May 6, down 4.4 per cent from a week earlier, the Department of Agriculture said Friday.

"We can price ourselves out of the market via the exchange rate," said Lawrence Kane, a market adviser at Stewart-Peterson Group in Elmwood, Illinois.

Cattle futures for August delivery sank 2.65 cents, or 2.8 per cent, to 92 cents a pound on the Chicago Mercantile Exchange, the biggest drop for a most-active contract since February 17, 2009.

Gold

Gold futures fell from a record as some investors sold the metal to cover losses in other markets.

The metal reached an all-time high of $1,249.70 an ounce before retreating as much as 0.9 per cent. Equities in Asia, Europe and the US tumbled.

"A lot of cash is coming out of the gold market to meet margin calls," said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago. "People need to raise cash and sell the positions that have been the most profitable."

Gold futures for June delivery fell $1.40, or 0.1 percent, to $1,227.80 on the Comex in New York.

Last week, futures increased 1.4 per cent, the fourth straight gain. On May 11, the price broke the record high set on December 3.