OPEC delegates said that the organization will not rush into making a further cut in oil output or end some countries’ exemptions to output limits, although a meeting in Russia next month is likely to consider further steps to support the market, Reuters reports.
“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 said; “It is possible but there are no real discussions now,” and added that a drawback of the current supply-limiting deal was Nigeria and Libya being exempt.