BANGKOK: Oil prices retreated Monday in Asia from last week's record close near US$126 a barrel as the dollar strengthened against the euro and yen.

Light, sweet crude for June delivery dropped 32 cents toUS$125.64 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore.

On Friday, the contract broke above US$126 for the first time andsettled at a record close of US$125.96 a barrel, up US$2.27.