Oil falls as storm threat abates

Crude oil fell to $118 a barrel on speculation Tropical Storm Edouard won't damage US Gulf facilities and as slower US economic growth limits the appeal of commodity investments.

Oil dropped to its lowest since May 5 as Edouard's sub- hurricane wind speeds eased concern that offshore and platforms would be damaged by the storm. Gold, platinum and wheat dropped on speculation slower growth will curb demand and as a stronger dollar dulled the appeal of commodities as an inflation hedge.

"As the storm no longer appears an immediate threat, the dominant theme is still weaker demand," said Andrey Kryuchenkov, an analyst at London-based Sucden (UK) Ltd. "Dropping below support levels around $120, where buying had first kicked in April, has probably triggered a lot of sell-orders."