OPEC will not Rush into Further Output Cuts

OPEC will not Rush into Further Output Cuts

OPEC delegates said that OPEC will not rush into making a further cut in oil output or end some countries’ exemptions to output limits, although a meeting in Russia in July is likely to consider further steps to support the market, according to Reuters.

OPEC, and allied non-OPEC producers, agreed on May 25 to extend an existing supply cut into 2018. However, 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. The delegate added, “They will look at this issue most probably in the upcoming meeting in Russia in July,” News York Times informed.

Another OPEC delegate stated, “A larger cut could be an option,” 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.

Dr. Mahinaz El-Baz 318 Posts

Mahinaz El Baz received her PhD degree in International Economics from Helwan University in 2022. She has +10 years of experience in journalism and economic analysis. She received the "Best Economic Article Award" in 2016 from CFA Society Egypt.

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