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.
