OPEC’s rejuvenated bid to tame crude prices could soon exhaust the planet’s spare capacity cushion, according to the latest monthly report coming from the International Energy Agency (IEA).
The IEA’s closely-watched report comes shortly after crude had its biggest one-day drop in two years, amid heightened U.S.-China trade tensions as well as persistent global crude supply problems.
“The large number of (supply) disruptions reminds us of the pressure on global oil supply. This particular will become an even bigger issue as rising production coming from Middle East Gulf countries as well as Russia, welcome though This particular can be, comes at the expense of the planet’s spare capacity cushion, which might be stretched to the limit,” the Paris-based organization said Thursday.
“This particular vulnerability currently underpins oil prices as well as seems likely to continue doing so,” the IEA added.