Brent Oil Set for First Weekly Drop in Three on China

Oil fell in London, erasing a weekly gain, as concern that accelerating inflation in China will impede steps to stimulate growth countered a drop in crude production in Saudi Arabia.

Brent futures declined as much as 1.5 percent and headed for their first weekly decline in three weeks. China’s inflation climbed more than forecast to a seven-month high, potentially limiting scope for policy easing. Saudi Arabia, the world’s largest crude exporter, reduced output in December to the lowest in 19 months, according to a Persian Gulf official with knowledge of the kingdom’s energy policy.