LONDON, Aug 30 Reuters Oil prices fell Tuesday on fears that an inflationinduced weakening of global economies would soften fuel demand, and as Iraqi crude exports have been unaffected by clashes.

Brent crude futures for October settlement fell 2.45, or 2.33, to 102.64 a barrel by 1022 GMT, after climbing 4.1 on Monday, the biggest increase in more than a month.

The October contract expires on Wednesday and the more active November contract was at 101.12 a barrel, down 1.76.

U.S. West Texas Intermediate crude was at 95.46 a barrel, down 1.55, or 1.6, following a 4.2 rise in the previous session.

Inflation is near doubledigit territory in many of the world39;s biggest economies, a level not seen in close to a half century. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes that could curtail economic growth and weigh on fuel demand.

The economy will continue to remain slow with the Feds aggressive monetary policies. Investors are now waiting for the monthly employment data on Friday, said Kunal Sawhney, chief executive officer, Kalkine Group.

Prices took a tumble after comments from Iraq39;s stateowned marketer SOMO that the country39;s oil exports are unaffected by unrest, UBS analyst Giovanni Staunovo said. 

Baghdad seeing its worst fighting for years as clashes between Shi39;ite Muslim groups spill into a second day.

SOMO also said on Tuesday it can redirect more oil to Europe if required. 

The…