OPEC will not rush into making a further cut in oil output or end some countries’ exemptions to output limits, OPEC delegates said, although a meeting in Russia next month is likely to consider further steps to support the market.
OPEC and allied non-OPEC producers agreed on May 25 to extend an existing supply cut into 2018, but oil has fallen sharply then on rising production from the United States and from Nigeria and Libya, two OPEC members exempt from cutting output.
“I doubt it will be considered soon,” said an OPEC delegate, referring to the chance of a larger cut. “They will look at this issue most probably in the upcoming meeting in Russia in July.”
Oil ministers from five countries monitoring the deal plus Saudi Arabia as OPEC president are scheduled to meet in Russia on July 24. They could make a recommendation to the wider group, which holds its next meeting in November, on adjusting the pact.
“A larger cut could be an option,” said another OPEC delegate, adding that further steps could be to place caps on further growth in Nigerian and Libyan output, rather than requiring them to cut back their supply.
A third source familiar with the matter agreed that removing more crude from the market was an option but said it was not being actively considered.
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