Oil Falls Below $107 Following Record Increase

A day after a record rise, oil fell to close below $107 a barrel, as continued uncertainty over a U.S. financial bailout plan and a stronger U.S. dollar led investors to shed commodities, the Associated Press reported.

The first decline in five days followed Monday’s $16.37 record jump, which put oil at more than $120 a barrel.

Some oil analysts said it could be poised for another big climb, pressed by tightening global supplies, continuing weakness in the dollar and caution about the U.S. government’s tentative $700 billion financial rescue plan, AP said.

Oil prices are $15 higher than last week, though they have generally slid since closing at a record $145.29 on July 3.