Saudi Arabia, the world's top oil exporter, announced it would go further than cutting its production and would also limit its exports at 6.6 million barrels a day. That's according to Bloomberg's Ben Sharples, reporting on a meeting of OPEC ministers ahead of a wider ministerial meeting today in St. Petersburg. The committee's statement made little reference to Libyan production gains, but said Nigeria would be willing to cap production as soon as it reached 1.8 million barrels per day.
But on Monday, OPEC officials said they were looking inward and contemplating a crackdown on countries that aren't keeping their promises to cut output.
Nigeria and Libya were exempted from the December 2016 cut back, which took effect in January, because of their struggles to restore production due to internal problems of damage to oil facilities.
This is given increased oil production in the Niger Delta following peace talks in the area that has caused violent attacks on oil facilities to cease.
A group of 24 oil exporting countries is considering extending production restrictions beyond March next year, oil ministers recommended on Monday in St Petersburg. The African country produced about 1.6 million barrels a day in June, giving it substantial room to keep increasing.
The current state of oil prices are in conundrums, the continued growth in oil production and stocks is still the main reason for the massive dip, most especially US' growing oil production.
Russian Energy Minister Alexander Novak said the output deal had helped clear 350 million barrels of additional supply from the market so far this year.
Meanwhile, in the US, weekly figures from energy services company Baker Hughes showed that the number of active rigs drilling for oil declined by 1 to 764 last week, suggesting early signs of moderating domestic production growth.
The lopsided market previous year dragged crude oil prices below $30 per barrel.
Saudi Arabia's efforts to shore up global oil prices ahead of the planned listing of Saudi Aramco was met with a shrug from the markets as traders kept their eyes on United States shale. Brent, the global benchmark, rose 63 cents, or 1.31%, to $48.69 a barrel on ICE Futures Europe.
"OPEC secretary-general Mohammad Barkindo said that the oil market is gradually rebalancing but more slowly than expected". USA benchmark West Texas Intermediate traded at $45.89, up 0.26%, though still well below last week's high of $47.12.