Brent oil declines to 3-week low

london — Brent oil prices dropped to a three-week low amid doubts Russia will cooperate with Opec to limit global production as industry data showed US crude stockpiles expanded. Equity markets also fell across Europe.

Brent futures declined as much as 1.8 per cent in London, falling below $50 a barrel to the lowest level since October 3.

Output cuts are not an option for Russia, the nation’s envoy to Opec said, according to Interfax. US crude inventories increased by 4.75 million barrels last week, the American Petroleum Institute was said to report. Energy Information Administration data Wednesday is forecast to show supplies rose.

Oil has fluctuated near $50 a barrel amid uncertainty about whether the Organisation of Petroleum Exporting Countries can implement the first output cuts in eight years and get producers outside the group to join in, notably Russia. An Opec committee will meet this week to try to resolve differences over how much individual members should pump, with Iraq saying it should be exempt because of conflict with Islamic militants.

“Comments from Russia yesterday have added to the doubts in the oil market fueled by the comments earlier this week from Iraq,” Jens Pedersen, an analyst at Danske Bank A/S said by e-mail, adding that sentiment in markets, including equities, was negative today. — Bloomberg