OPEC+ Spare Capacity to Increase 700kbpd After Production Cut

OPEC+ spare capacity will increase to nearly 3.1mbpd in November when the 2mbpd production cut takes effect according to Energy Intelligence. This in an increase in spare capacity of approximately 700kbpd from the current estimate of 2.4mbpd.

• The increase will give the group more flexibility to cope with potential losses to Russian production due to the EU seaborne crude ban and G7 price cap from Dec 5. Energy Intelligence forecast a loss of 600kbpd of Russian crude and 600kbpd of Russian product supplies.
• Saudi Arabia and UAE will hold most of the spare capacity at about 2.8mbpd with possible access within 30 days’ notice.