Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

IEA sees OPEC+ spare capacity gaining slightly in 2022

06/11/2021 | 07:35am EDT
FILE PHOTO: A 3D-printed oil pump jack in front of the OPEC logo in this illustration picture

LONDON (Reuters) - The International Energy Agency expects spare capacity in the OPEC+ alliance to rise by 180,000 barrels per day (bpd) next year to 50.55 million bpd, driven by hikes from Mideast Gulf producers.

"Saudi Arabia and Kuwait are expected to continue to build up production in the shared Neutral Zone, the UAE raises capacity at the Upper Zakum field, among others, and Iraq further develops its giant southern fields," the IEA said in a monthly report on Friday.

OPEC+ Production Capacity

Other members in the alliance between the Organization of the Petroleum Export Countries and other producers such as Russia are expected to keep investing to keep capacity steady next year.

Capacity is expected to slip for some West African producers, IEA data shows.

OPEC+ Spare Capacity https://fingfx.thomsonreuters.com/gfx/ce/gjnpwmrwwpw/IEA%20OPEC%20spare%20capacity.PNG

The IEA anticipates the call on OPEC+ crude to rise by 1.2 million bpd to 43.3 million bpd next year. For the fourth quarters of this year and next, however, the agency expects the figure to rise to 44 million bpd.

"OPEC+ effective spare capacity (excluding shut-in Iranian crude) in 2021 would fall to 5 million bpd in the fourth quarter but in 2022 it could stand at 5.1 million bpd given the planned capacity expansions," the IEA said.

OPEC+ agreed in April to gradually ease oil output cuts from May to July by 2.1 million bpd and confirmed the decision at a meeting on June 1, leaving the group with 5.8 million bpd of cuts.

"There will likely be more pressure on the group in the coming months to bring more of this capacity back to the market, particularly if we remain in the current price environment," bank ING said.

Oil prices were trading near a two-year high of about $73 a barrel on Friday, and were on track for a third week of gains, buoyed by optimism about demand recovery. [O/R]

(Reporting by Ahmad Ghaddar; editing by Jason Neely)

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
EURO / DIRHAM (EUR/AED) -0.03% 4.3826 Delayed Quote.-2.49%
LONDON BRENT OIL 0.70% 75.25 Delayed Quote.44.72%
US DOLLAR / DIRHAM (USD/AED) 0.00% 3.6728 Delayed Quote.0.00%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) -0.17% 72.7591 Delayed Quote.-1.01%
WTI 0.51% 73.171 Delayed Quote.51.56%
Latest news "Economy & Forex"
01:42pU.S. SEC chair provides more detail on new disclosure rules, Treasury market reform
01:33pWhat is the Treasury yield curve and what is it telling us?
01:30pU.S. retail stock buying hit record level on Friday -Vanda Research
01:22pU.s. itc says tire imports from vietnam sold in the u.s. at less than fair value are negligible and voted to terminate the antidumping duty investigation -statement
01:19pMalta says it has been greylisted by financial crimes watchdog
01:19pMalta prime minister abela says fatf decision is "unjust", pledges to continue with financial reforms
01:18pMalta has been put on a grey list by anti-money laundering watchdog fatf -maltese prime minister abela
01:18pU.s. itc finds imports of tires from vietnam are sold in u.s. at less than fair value and subsidized by vietnamese government -statement
01:15pU.s. international trade commission finds tire imports from korea, taiwan, thailand materially injure u.s. industry -- statement
01:15pGARY KELLY : Southwest CEO Gary Kelly to hand reins to insider Robert Jordan
Latest news "Economy & Forex"