OPEC: Still No Production Cuts Despite Growing Concerns Amongst Gulf Members

Worries are also starting to crop up among OPEC's Gulf members, reports say.

Despite growing concerns over the recent renewed slide in oil prices, which on Monday saw crude take another big downward step, the Organization of the Petroleum Exporting Countries (OPEC) is unlikely to cut production levels, Reuters reports. 

Worries have reportedly even been growing among Gulf members of OPEC, who can typically withstand pricing pressures better than their non-Gulf counterparts. 

"Oil prices will remain volatile... but they will recover," an OPEC delegate from a Gulf oil producer said, with the hope that the market will recover by the fourth quarter of this year. 

OPEC member countries are reportedly holding onto a strategy of defending market share, and are also said to be counting on China's continued stockpiling of cheap crude to drive demand. 

"There is a concern about the health of the Chinese economy, but as numbers have shown the need to import oil is increasing," the OPEC delegate said. 

However, it was suggested that recent weakness in the Chinese yuan may also have a negative impact on China's ability to prop up oil prices. 

Overall, Saudi Arabia, who has often acted as the de facto leader of OPEC, is unlikely to change strategies, especially as two other Gulf producers, Iran and Iraq, are preparing to ramp up exports, reports say. 

"The Gulf states are worried about the decline but there will be no change of direction unless Saudi was to lead it," an industry source said. 

OPEC confirmed earlier in July that it would be maintaining output ceiling, having argued at the time that prices couldn't stay low forever.