(Adds investor quotes and details throughout, updates prices)

* TSX ends down 61.48 points, or 0.3%, at 20,302.11

* Closing level was lowest since July 30

* Energy sector falls 2%

* Canada's annual inflation rate rises to 3.7% in July

TORONTO, Aug 18 (Reuters) - Canada's main stock index fell to its lowest level in nearly three weeks on Wednesday as investors weighed rising global COVID-19 cases and minutes from last month's Federal Reserve policy meeting.

The Toronto Stock Exchange's S&P/TSX composite index ended down 61.48 points, or 0.3%, at 20,302.11, its lowest closing level since July 30.

The index has declined each day since notching last Wednesday a record closing high of 20,554.01.

The spread of the Delta variant of the coronavirus "is having some effect on the markets on a day-to-day basis," said Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth.

"Investors should brace themselves for a little bit of volatility but overall the underlying trend is still positive."

U.S. crude oil futures settled 1.7% lower at $65.46 a barrel, with investors remaining worried about the outlook for fuel demand as COVID-19 cases surge worldwide.

The energy sector, which accounts for 11% of the Toronto market's capitalization, fell 2%, while the materials group lost 1.7%.

Meanwhile, Fed officials felt the employment benchmark for decreasing support for the economy "could be reached this year." The central bank's easy money policies have been a crucial support for the equity market.

Canada's annual inflation rate accelerated to 3.7% in July, the hottest pace since 2011, but the data was not expected to impact the Bank of Canada's policy outlook.

"Policymakers have reiterated that the latest pricing pressures are likely to be transitory in nature," said Candice Bangsund, a portfolio manager at Fiera Capital.

BlackBerry Ltd gained 4.3% after Canaccord Genuity said it believed a cybersecurity flaw in a software designed by the company will have a minimal impact to its long-term prospects. The launch of a share repurchase program boosted Canada Goose Holdings Inc, which ended up 5.6%. (Additional reporting by Sruthi Shankar in Bengaluru; Editing by Sam Holmes)