Spare capacity in oil market set to fall as producers ramp up supply – The National

Spare capacity in oil market set to fall as producers ramp up supply – The National

Spare capacity in oil market set to fall as producers ramp up supply. Global oil spare production capacity could fall in April as Saudi Arabia and the UAE bring more supply to the market following the collapse of output restriction pact.. "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 Nasseri, Middle East managing director at London-based Facts Global Energy.. Spare capacity is the volume of production that can be brought on within 30 days and sustained for at least three months.. Saudi Arabia, the world's largest crude exporter and Opec's biggest producer, which has historically had the greatest spare capacity, last week said its supply for the month of April would be 12.3m bpd, which is 300,000 bpd above its production capacity.. The state producer Abu Dhabi National Oil Company had previously earmarked the capacity target for the year 2030.. Jim Burhard, IHS Markit vice president and head of oil markets said "there is essentially no spare capacity in the short-term as long as Saudi Arabia produces 12m bpd-up to their capacity" with the