Oil prices dropped early on Wednesday as ongoing production cuts led by OPEC were undermined by a rise in production in the United States and a stronger U.S. dollar.

U.S. West Texas Intermediate (WTI) crude futures were at $61.32 a barrel at 0307 GMT, down 47 cents, or 0.8 percent, from their last settlement.

Brent crude futures fell 39 cents, or 0.6 percent, from their last close to $64.86 per barrel.

In stocks, global markets were mostly down on Tuesday as Wall Street pulled back.

Asian shares were higher on Wednesday morning in early trade, as Japanese shares were boosted by the strengthening dollar, giving an edge to export-focused companies.

MSCI’s broadest index of Asia-Pacific shares outside Japan took early cues from overnight losses on Wall Street and lost 0.1 percent before rising 0.5 percent.

In the Middle East, most markets in the region were lower on Tuesday, in line with a drop in global markets.

Bahrain and Egypt outperformed the region.

Egypt's index gained 0.4 percent as Commercial International Bank climbed a further 1.4 percent.

Bahrain’s index gained 0.9 percent.

Dubai’s index fell 0.8 percent, dragged down by weak real estate stocks, with Emaar Properties falling 1.2 percent.

Neighbouring Abu Dhabi’s index was mainly flat, edging down 0.04 percent. Abu Dhabi National Energy jumped a further 13.4 percent in heavy trading.

The Saudi index closed 0.3 percent down as Saudi British Bank fell 2.2 percent after reporting a 16.3 percent rise in fourth-quarter net profit to 706 million riyals ($188 million), missing analysts' average forecast of 946.5 million riyals.

Qatar’s index edged down 0.1 percent, Kuwait’s index dropped 0.5 percent and Oman’s index fell marginally by 0.1 percent.

In currencies, the dollar on Wednesday was up against a basket of major currencies, increasing by 1.6 percent from Friday’s three-year low. It steadied in early trading near these levels.

Against the yen, the dollar edged up 0.1 percent.

Gold prices remained weak on Wednesday as a stronger dollar weighed on the safe haven.

Spot gold was 0.1 percent lower to $1,328.65 an ounce at 0130 GMT, down for a fourth straight session.

In other news, Iraq’s oil ministry said on Tuesday that the country has invited foreign companies and investors to bid for the construction and operation of a new 100,000 barrel per day (bpd) refinery near Mosul in the northern province of Nineveh.

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