Opec still ‘very unlikely’ to cut oil output in June

Opec is very unlikely to cut output at its next meeting in June, even if prices remain extremely low, according to organisation sources and delegates, as it will be too early to say how fast Iranian output is rising.

The sources, which include officials from the Middle East, say Opec countries like Saudi Arabia also want to test Russia’s commitment to freezing output before taking any further steps to stabilise prices.

More than 18 months after oil prices began a steep slide due to excess supply, Saudi Arabia, Qatar, Venezuela and non-OPEC Russia agreed last month to freeze output at January levels in the first global oil pact in 15 years.