OPEC will not seek to further reduce oil production

OPEC will not seek to further reduce oil production or cessation of exemption of certain countries from limiting production volumes, said OPEC delegates, though in the next month at a meeting in Russia, probably, will consider further steps to support the market.

28.Jun.17 3:32 AM
By Daria Zaytseva
Photo Toinnov.com

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OPEC will not seek to further reduce oil production

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 production cuts.

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.

Iran said last week OPEC was considering further cuts but should wait until the effect of the current reduced level of production became clear. Saudi Energy Minister was quoted on June 19 as saying the market was heading in the right direction, while Russia said on June 11 there was no need to review the deal.

Nigeria and Libya were exempted from the reduction due to production losses caused by riots. Iran was given a small increase so it could regain market share that was lost while under Western sanctions.

Nigeria stated it would be ready to join OPEC cuts if production rose to around 1.8 million bpd. The country is nearing that rate and planned exports in August involves the production of at least 2 million bpd.

Libya is targeting production of 1 million bpd by the end of July, compared with an average of 650,000 bpd in the first quarter.

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