2024-01-31T08:32:06+00:00
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/ Reuters reported on Wednesday that the Organization of the Petroleum Exporting Countries (OPEC), such as Iraq, Saudi Arabia, the UAE and Kuwait, still control almost all of the world’s excess crude oil production capacity.
The agency stated that “surplus energy is idle production that can be provided in times of crises, wars and natural disasters.”
She pointed out that “OPEC’s total spare capacity amounts to 5.1 million barrels per day, including 3.2 million barrels per day in Saudi Arabia, 1 million barrels in the UAE, 400,000 barrels in Iraq, and 300,000 barrels per day in Kuwait.”
She pointed out that “the largest producers in OPEC, as well as some of their allies, have excess capacity as a result of their decisions to reduce supplies to the global market due to the increase in production from non-alliance producers such as the United States, Brazil and Ghana.”
The agency pointed out that “HSBC Bank, in a report last week, explained that OPEC’s above-average surplus capacity will offset the impact of the unrest in the Red Sea and the increasing geopolitical risks, with the possibility of Brent crude prices remaining between $75 and $85 per barrel in the medium term.”