LONDON, Feb 20: The price of oil suffered heavy losses on Wednesday after Russia stalled on extending its recent export cutback, sparking concerns about an all-out price war between leading producers.

A barrel of benchmark Brent North Sea crude for April delivery dropped to 19.98 dollars from 20.52 on Tuesday evening.

In New York, the light sweet crude March contract gave up another 60 cents to 20.28 dollars.

Prices fell after Russian ministers delayed Wednesday a decision on future export quotas, fuelling expectations they might break a fragile agreement with other leading producers to rein in supply in line with weak demand.

Russia is the world’s second-largest oil exporter, and OPEC General Secretary Ali Rodriguez and President Rilwanu Lukman are both expected in Moscow next month to try to persuade Russia not to export more crude.

Such a move could sent the oil price tumbling, analysts warn.

But it might benefit Russia, whose oil markets are awash with supply that has been held back to meet its lower export quotas, said the Renaissance Capital investment bank in Moscow.—AFP