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Goldman triggers commodity retreat

Oil prices tumbled sharply, leading many commodities lower on Tuesday, after Goldman Sachs suggested investors should take profits and amid worries that higher energy costs could drag on the global recovery.

Raw materials from Brent crude to wheat, cotton and metals fall in unison, paring strong gains made since mid-March on lost oil output in Libya and steep falls in agricultural stocks.

Dealers reacted to growing concern that higher raw materials costs would begin to eat into demand and affect the pace of economic recovery. The International Energy Agency had reported that high oil prices had begun to dent consumption growth.

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