NEW DELHI, Sept 6 Reuters Oil prices reversed course on Wednesday after rising over 1 in the previous session, as investors shrugged off jitters arising from supply cuts from Saudi Arabia and Russia and a firm dollar capped the upside.

Brent crude futures were down by 9 cents to 89.95 a barrel at 0657 GMT. U.S. West Texas Intermediate crude WTI futures traded at 86.60 a barrel, also down 9 cents.

Against a basket of currencies, the dollar was at 104.69, not far off the sixmonth high of 104.90 touched overnight. A stronger dollar can weigh on oil demand by making the fuel more expensive for holders of other currencies.

Analysts at Rystad Energy and ING Economics said the output cuts from OPEC will leave the market with a deeper than expected deficit over the fourth quarter of 2023, which should continue to support prices.

However, ING Economics was reluctant to revise price forecasts higher, as it expected demand concerns to continue to linger amid a rise in Iranian supply.

Iran is producing close to 3.1 million barrels per day bpd and plans to pump around 3.4 million bpd. Meanwhile, our oil balance shows a small surplus in the first quarter of 2024, which should limit prices moving significantly higher, ING Economics analysts said in a note.

Reflecting supply concerns in the near term, the frontmonth Brent futures traded near 9month highs at 4.13 a barrel above prices in six months.

For U.S. WTI futures, the spread between frontmonth and the sixmonth contract…