Global oil spare capacity
Spare capacity is the extra oil a producing country can bring onstream and sustain at short notice, providing global markets with a cushion in the event of natural disaster, conflict or any other The Paris-based energy market watchdog estimated global spare production capacity has recently risen to 3.3 million b/d, with 2.2 million b/d held by Saudi Arabia and around 1 million b/d by the United Arab Emirates, Iraq and Kuwait. The US on Monday said sanctions waivers granted to eight major buyers of Iranian oil would expire on May 2. OPEC’s spare capacity amounted to 3.24 million barrels per day in June 2018, with world oil demand forecast to reach 100 million barrels per day by the end of the year. Saudi Arabia has held, on average, 70 percent of OPEC’s total spare capacity since 2001. But the attack also constrained Saudi Arabia’s ability to use the more than 2 million bpd of spare oil production capacity it held for emergencies. Global spare oil capacity is getting tighter: Cornerstone Macro. BNN Bloomberg speaks with Cornerstone Macro's Jan Stuart about the outlook for oil, amid new highs and Iran uncertainty. Strong economies will, in turn, use more oil and we expect demand to grow at an average annual rate of 1.2 mb/d. By 2023, oil demand will reach 104.7 mb/d, up 6.9 mb/d from 2018. As has been the case for some years, China and India together will contribute nearly 50% of global oil demand.
Energy Aspects has said it expects OPEC spare capacity to fall to below 1 million bpd in the fourth quarter from two million bpd in the second quarter of 2019. GRAPHIC: OPEC oil production
OPEC has spare oil capacity ranging between 3-3.5 million b/d, with two thirds of that figure present in Gulf countries, the secretary general of the organization, Mohammad Barkindo, told reporters last week. The EIA, using a tighter definition, estimates global spare production capacity at 1.63 million b/d, all held by OPEC's Middle East members. When oil markets set their sights on dwindling spare capacity, the result can be painful for consumers. Such concerns were behind oil’s record run to $147 a barrel in 2008. The “peak oil” fears that drove that price spike don’t exist today, thanks in large part to the U.S. shale oil boom. Barclays argues that global spare capacity could actually be about 1 to 1.5 mb/d higher than is commonly thought. The investment bank acknowledged that the deteriorating situation in Libya, combined with the potential catastrophic losses in Iran, puts the oil market in a bind. As a result of OPEC’s high compliance rate with the agreed supply cuts in the OPEC+ group, global spare production capacity has risen to 3.3 mb/d, with 2.2 mb/d held by Saudi Arabia and around 1 mb/d by the United Arab Emirates, Iraq and Kuwait. Spare capacity is the extra oil a producing country can bring onstream and sustain at short notice, providing global markets with a cushion in the event of natural disaster, conflict or any other
As a result of OPEC’s high compliance rate with the agreed supply cuts in the OPEC+ group, global spare production capacity has risen to 3.3 mb/d, with 2.2 mb/d held by Saudi Arabia and around 1 mb/d by the United Arab Emirates, Iraq and Kuwait.
17 Jul 2018 The model describes how OPEC maintains a buffer of spare capacity that it uses to offset perceived shocks to global oil demand and supply. 16 Sep 2019 They also harmed the country's spare production capacity, which can shutting down production on around 5% of the world's daily crude oil
7 Jan 2020 But oil can be a highly volatile commodity, and crude oil prices rose by roughly 4 percent on Most of that spare capacity is in Saudi Arabia.
Global spare oil capacity is getting tighter: Cornerstone Macro. BNN Bloomberg speaks with Cornerstone Macro's Jan Stuart about the outlook for oil, amid new highs and Iran uncertainty. Strong economies will, in turn, use more oil and we expect demand to grow at an average annual rate of 1.2 mb/d. By 2023, oil demand will reach 104.7 mb/d, up 6.9 mb/d from 2018. As has been the case for some years, China and India together will contribute nearly 50% of global oil demand. In 2006, oil demand was about 85 mb/d, with spare capacity at about 2 mb/d. Today, spare capacity is also at about 2 mb/d, but the oil market is now 15 mb/d larger than it was in 2006. That means OPEC’s spare capacity continues to shrink as a percentage of global supply over time, absent any upstream capacity additions.
The Organization of the Petroleum Exporting Countries is an defines spare capacity for crude oil market management "as
When oil markets set their sights on dwindling spare capacity, the result can be painful for consumers. Such concerns were behind oil’s record run to $147 a barrel in 2008. The “peak oil” fears that drove that price spike don’t exist today, thanks in large part to the U.S. shale oil boom. Barclays argues that global spare capacity could actually be about 1 to 1.5 mb/d higher than is commonly thought. The investment bank acknowledged that the deteriorating situation in Libya, combined with the potential catastrophic losses in Iran, puts the oil market in a bind. As a result of OPEC’s high compliance rate with the agreed supply cuts in the OPEC+ group, global spare production capacity has risen to 3.3 mb/d, with 2.2 mb/d held by Saudi Arabia and around 1 mb/d by the United Arab Emirates, Iraq and Kuwait.
“Does the world have enough storage capacity to handle it? For crude oil, we estimate total spare inventory capacity at 900 million barrels,” BofA Global Research said. "Global spare capacity will drop by 2-3 million bpd as most of the players with spare capacity will start ramping up their production to near their capacity in a market share war," said Iman Global spare oil capacity in U.S. hands after Saudi outage. Saudi Arabia has yet to comment on the extent of damage on its oil production but industry sources have said 5-6% of global supply have been affected OPEC has spare oil capacity ranging between 3-3.5 million b/d, with two thirds of that figure present in Gulf countries, the secretary general of the organization, Mohammad Barkindo, told reporters last week. The EIA, using a tighter definition, estimates global spare production capacity at 1.63 million b/d, all held by OPEC's Middle East members. When oil markets set their sights on dwindling spare capacity, the result can be painful for consumers. Such concerns were behind oil’s record run to $147 a barrel in 2008. The “peak oil” fears that drove that price spike don’t exist today, thanks in large part to the U.S. shale oil boom. Barclays argues that global spare capacity could actually be about 1 to 1.5 mb/d higher than is commonly thought. The investment bank acknowledged that the deteriorating situation in Libya, combined with the potential catastrophic losses in Iran, puts the oil market in a bind.