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By Barbara Lewis
Reuters
Tuesday, August 29, 2006; 3:26 PM

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LONDON (Reuters) - Oil dropped below $70 a barrel on Tuesday to the lowest in more than two months, extending a steep sell-off as fears receded of storm damage to oil and gas infrastructure in the U.S. Gulf of Mexico.

Concern about economic weakness in the United States, the world's biggest energy consumer, added to selling momentum, while Iran's determination to press ahead with its nuclear programme was expected to check the slide.

U.S. crude for October delivery ＜CLc1＞ settled down 90 cents to $69.71 a barrel, the first close below $70 since June 20. London Brent crude ＜LCOc1＞ lost 96 cents to $69.86.