Oil prices sank below the $120 level for the first time since early May while base metals and grains retreated as selling pressure swept across commodity markets yesterday.

Nymex September West Texas Intermediate sank to a low of $119.50 before recovering slightly to settle $3.69 lower at $121.41 a barrel. ICE September fell $3.50 to close at $120.68 a barrel after touching a low of $118.80.