IEA says that OPEC output may be stretched to the limit by supply crises

Author: Justin Low | Category: News

Comments by IEA via its monthly oil report

  • Saudi spare capacity could shrink to unprecedented levels
  • May be left with less than 1 mil bpd in spare capacity
  • OPEC's Gulf members may need to pump as much as they can to cover supply losses from Venezuela and Iran
  • China, India could face major challenges in sourcing crude oil due to fall in Venezuela and Iran exports
  • Sees no sign of higher production from elsewhere that might ease fears of market tightness
  • Global oil demand forecast for 2018 maintained at 1.4 mil bpd
Well, even if Saudi's spare capacity shrinks I doubt they'd be disinclined to dig into it and produce more should there be a need for it. After all, they're fighting the bigger battle of market share with the US producers rather than focusing on near-term goals.

Nothing much else from the report apart from highlighting the concerns pertaining to the supply issues faced by Venezuela and Iran.

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