OIL FELL MORE THAN 2.5 PERCENT TO BELOW $69 A BARREL TUESDAY AS RISK-AVERSE INVESTORS FLED FROM COMMODITY MARKETS, SPOOKED BY FEARS THAT INTEREST RATES WOULD RISE TO COMBAT INFLATION, REUTERS REPORTED. PRICES OF INDUSTRIAL AND PRECIOUS METALS ALSO FELL SHARPLY AND EQUITY MARKETS DROPPED. A FLOW OF MONEY FROM INVESTMENT FUNDS HAS HELPED SEND OIL AND SOME OTHER COMMODITIES TO RECORD OR DECADES HIGHS IN 2006. "THE BROADER MARKET CONCERN IS ABOUT GROWTH AND INFLATION," SAID CRAIG PENNINGTON, GLOBAL ENERGY PORTFOLIO MANAGER AT SCHRODERS. "FROM THE OIL MARKET'S PERSPECTIVE, THE CONCERNS ARE THAT IF YOU SEE SLOWER ECONOMIC GROWTH YOU'LL SEE SLOWER OIL DEMAND." U.S. CRUDE FOR JULY SETTLED DOWN $1.80 AT $68.56 A BARREL AFTER TRADING AS LOW AS $68.30. LONDON BRENT CRUDE LOST $2.01 TO $66.92 A BARREL. OIL ALSO SLIPPED ON EXPECTATIONS U.S. GASOLINE INVENTORIES ROSE FOR A SEVENTH WEEK AND AS THE SEASON'S FIRST ATLANTIC STORM, TROPICAL STORM ALBERTO, WEAKENED ALONG A ROUTE THAT WILL MISS U.S. ENERGY INSTALLATIONS. "IT WAS CLEAR YESTERDAY MORNING THAT ALBERTO WAS NOT GOING TO HIT THE INSTALLATIONS IN THE U.S. GULF," SAID DEBORAH WHITE, ANALYST AT SOCIETE GENERALE. "IT JUST BECAME A REMINDER THAT THE HURRICANE SEASON IS BACK."
