Thursday, October 25, 2012

World's Spare Oil Capacity Grows


The world's spare oil production capacity outside of Iran rose in last two months to 2 million barrels per day, up from 1.8 million bpd in the previous two months, Reuters quoted the EIA bimonthly report a day ahead of its publication. (Reuters, 25 October)
The spare oil capacity growth was attributed to waning demand for gasoline in the U.S. and the fall in oil use for power generation in the Middle East, EIA reports.
While demand fell, global production outside of Iran rose, the report says. Libya, Iraq and Saudi Arabia pumped more crude and the United States continued to draw more oil from its vast shale reserves.
EIA reports also points to a “very small” increase in global imports of Iranian crude since the July low. The report comes ahead of key decisions facing the Obama administration in December on whether to extend six-month “exceptions” or waivers to the sanctions to China, India, South Korea and other importers.

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