For years, OPEC producers have been the main swing producers in oil markets. This week, a possible doomsday scenario could emerge in oil markets, based not only on OPEC+ export strategies but also due to increased internal turmoil in Libya, Iraq, and Ecuador. Global oil markets have long believed that OPEC has enough spare production capacity to stabilize markets, with Saudi Arabia and the UAE just needing to open their taps. Saudi Arabia is producing at 10.5 million bpd, with official capacity between 12-12.5 million bpd. If spare production capacity is revealed to be under 1.5-2 million bpd, the future of both OPEC and oil markets would be bleak.

Source: The North Africa Journal June 29, 2022 10:27 UTC