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Global Energy Studies Centre: OPEC’s spare capacity to rise in 2013

Oil&Gas Materials 18 December 2012 17:26 (UTC +04:00)

Azerbaijan, Baku, Dec. 18 / Trend A. Badalova /

OPEC's spare capacity will rise to 4.1 percent of global oil demand in 2013, analysts of the Global Energy Studies Centre (CGES) believe.

According to the CGES analysts' report, due to the recent reduction in Saudi Arabia's production, OPEC's spare output capacity has risen slightly to 3.74 million barrels per day (mbpd).

Although OPEC decided in Vienna recently to maintain its 30-mbpd ceiling, making no attempt to address its excess production, which has persisted throughout 2012, many observers predict that the Saudis and their Gulf allies will need to trim output in 2013.

OPEC decided on December, 12 in Vienna to keep its oil production limit of 30 million barrels per day.

According to the latest OPEC oil market report, organization's output amounted to 31.23 million barrels per day (bpd) in the third quarter of 2012 compared to 31.49 million bpd in the second quarter of the year.

CGES analysts' believe that next year is going to be a challenging one for OPEC largely because non-OPEC supplies, led by booming US production, are predicted to rise at a time of weak global economic growth, requiring around 1 mbpd of cuts from the Organisation to keep its basket price around $100 per barrel.

"Paradoxically, these cuts would cause OPEC's spare capacity to rise to 4.1 percent of global oil demand, exerting some downward pressure on oil prices from this direction," CGES report said.

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