Oil exporters inability to limit production jeopardizes a deal the oil cartel struck past year with 10 outside producers to cut the global supply by 2 percent and boost prices.
The meeting disclosed that compliance among members is now around 95 percent with the agreed 1.8 million barrels per day in a deal already extended till March 2018.
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.
OPEC members Libya and Nigeria have boosted their output, while Ecuador announced last week that it would leave the cut agreement, arguing that the state needs oil revenues. According to Novak, investments in the global energy sector are still robust, increasing for the first time since 2014, which he said would "help avoid a potential deficit [in oil and petroleum products] in the future".
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.
The efforts to cut oil output are taking place without the involvement of the United States, which has become a major producer in recent years thanks to shale deposits.
Crude oil prices moved between strong to medium gains for most of early morning trading.
OPEC production for July is expected to rise by about 145,000 barrels per day compared to June's output, according to preliminary estimates by Petro-Logistics, which tracks oil tanker movements. Implementation of the 2017 budget recently passed by the Senate may be a huge challenge, following the OPEC's decision to cap Nigeria's oil output at 1.8 m barrels per day.
After suffering heavy losses at the end of last week, oil received a push higher on Monday on the back of talks in Russian Federation between OPEC and non-OPEC countries regarding global output and price stability.
(OPEC) and other producers including Russian Federation that are locked in a battle against rising shale production in their efforts to boost prices.
US oil drillers cut one rig in the week to July 21, according to data from Baker Hughes. The North American benchmark WTI is now trading at $45.8 per barrel and Brent at $2.3 per barrel premium to WTI.
There was no discussion of deeper output cuts, and OPEC Secretary-General Mohammad Barkindo said Nigeria had no intention of going beyond its production target of 1.8 million bpd.
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