Oil prices fell sharply toward $80 a barrel on Monday as investors took profits from the near-record highs of last week and weighed the threat of a deeper economic slowdown in the United States.

U.S. crude settled down $1.42 to $80.24 a barrel after sliding as low as $79.55 earlier in the day. London Brent crude dropped $1.53 to $77.64.

Oil prices have surged more than 30 percent this year, to an all-time high of $83.90 in late September, on expectations of a supply shortfall in the fourth quarter as heating demand peaks in the Northern Hemisphere.

But a weak dollar limited oil's losses and propped up other commodities denominated in the currency. Gold hit a 28-year high on Monday, while platinum neared a record peak.

The Organization of the Petroleum Exporting Countries agreed last month to boost production by 500,000 barrels per day to soothe consumer concerns over high prices and tight supplies.

But oil has traded near $80 for the past three weeks and OPEC is reluctant to promise more oil just yet.

Gasoline supplies were expected to have risen 400,000 barrels, with distillate stocks seen up 900,000 barrels.