OIL PRICE FALLS AGAIN AS COMMODITIES ROUT DEEPENS

London, May 6- Oil lost yet more ground today after its record rout yesterday as investors continued their stampede out of black gold and a host of other commodities amid worries over global growth.

Brent crude fell $2.65 to $108.12 a barrel, off as much as $5 at one point following yesterday's dramatic 10% plunge, and prompting predictions crude could continue its run to around $90.

The fall in commodities across the board comes after disappointing data from the US economy, as well as fears over lower global demand as fast-growing emerging markets step up their fight against inflation.

The imminent end of the Federal Reserve's $600 billion (£364 billion) money-printing programme could also hit growth in the US, which expanded at a disappointing 1.8% annual pace in the first quarter.

Yesterday's "flash crash" in commodities also came a day after commodities trading giant Glencore set a £36.5 billion price on its London float, which many speculate could ring the bell for the top of the market.

Brent has lost more than 12% since Wednesday's close, the biggest two-day fall since the global financial crisis over two years ago.

Silver has plunged nearly 30% since record highs last week, while copper, zinc and tin registered falls of more than 1% today. This leaves the Reuters-Jefferies CRB index, a global commodities benchmark, on course for its biggest weekly fall since July 2008 after slumping around 8% so far as speculators also unwind positions.

CMC Markets analyst Michael Hewson said copper had fallen below key technical levels and added: "A lot of people are long speculatively and they have decided to cash in their chips”.

The rush out of commodities has also been fuelled by a strengthening dollar after the European Central Bank signalled a rate rise in June looks unlikely.

Daniel Wills, analyst at ETF Securities, said: "In the near term it is a worry for markets given how far prices have been falling but over the longer term it might be better news for sustainable growth”.

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