Oil, metals pull back as recession fears haunt

Singapore: Oil, grains and industrial metals retreated on Tuesday as fears of widespread recession overwhelmed wary optimism over Beijing's $600 billion stimulus package.

Oil prices tumbled more than $2, Shanghai copper futures fell nearly 4 per cent and soybeans lost 1.5 per cent as more bad news ended hopes of an early economic revival.

Asian stocks retreated after shares of General Motors sank to a 62-year low and brokerages forecast that Goldman Sachs will post its first-ever quarterly loss, stirring worries about the earnings damage to come as the global economy faces a recession.

The bankruptcy of No. 2 US electronics retailer Circuit City added to the gloomy atmosphere.

US light, sweet crude for December delivery fell $1.98 or 3.17 per cent to $60.43 a barrel, ending a mild two day rally. Prices ended 2 per cent higher on Monday after touching a near 20-month low of $59.10 a barrel.

News on Monday that Saudi Arabia had cut oil sales to major customers in Asia and Europe also failed to turn the tide on a market that has shed 60 per cent of its value since hitting a record high above $147 a barrel in July.

Gold was little changed after rising 2 per cent the previous day on China's economic plan. Investors were however reluctant to buy further after the gloomy outlook for the global economy was underscored by a renewed sell-off in equities and news that China's annual consumer price inflation had fallen to a 17-month low.