The August crude contract fell back $ 1.94 to $ 45.13 US per barrel, following a Bloomberg report that the influential non-OPEC member would oppose any proposal for more cuts at a meeting later this month.
One of the four unnamed Russian government officials told the news wire that further reductions suggest that OPEC and non-member countries don’t think their pact to reduce supply by 1.8 million barrels a day through to March 2018 is having the desired effect on oil prices.
While Russia, Saudi Arabia and other nations involved in the deal have met their targeted cuts, an unforeseen increase in U.S. supply have been blamed for countering these efforts.
“Oil prices are tumbling lower on this Russian news,” said Candice Bangsund, vice-president and portfolio manager at Fiera Capital in Montreal.
Indexes seemed to shrug off the release of the June meeting minutes from the U.S. Federal Reserve, which showed that officials were at odds over when the central bank should start unwinding its $ 45 trillion US in bond holdings.
Bangsund says the indecisiveness between Fed officials have increased the odds that another forecasted rate hike will probably not be likely until December, instead of September. The Fed has raised rates, which sits at a still-low range of one per cent to 1.25 per cent, three times in the past six months.
Elsewhere in commodities, the August natural gas contract dipped 11 cents at $ 2.84 per mmBTU and the September copper contract fell three cents at $ 2.66 a pound. Bullion prices shone as the August gold contract gained $ 2.50 to $ 1,221.70 an ounce.