OPEC sees idle production capacity below historic standards

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The secretary general of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais, justified the low increase of 100 thousand barrels per day (bpd) in the plans for the cartel’s offer in September, citing the weak idle capacity of the market today. , in an interview with Bloomberg TV this Wednesday (17).

“We are running on thin ice,” said Al Ghais, who sees OPEC and its allies’ idle capacity at around 2 to 3 million bpd, below the historic standard.

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On the face of it, the group preferred not to completely exhaust its production capacity, so as not to leave the oil market without any guarantee of safety, he said.

As for global demand, Al Ghais said that OPEC remains optimistic.

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Not only is China expected to increase its consumption soon, but also Europe, given the shift in supplies from natural gas to oil, assessed the secretary-general.

According to him, the demand for jet fuel has also not fully recovered.

With this perspective in mind, Al Ghais said that the market should face an even more intense squeeze soon, which underscores the “importance” of investments in fossil fuels, in his view.

He also argued that the market can support the return of oil supplies from Iran, a “responsible supplier”, according to Al Ghais.

The country is negotiating with the US and the European Union (EU) the resumption of the 2015 nuclear deal, which would pave the way for the return of the global supply of Iranian oil.

Source: CNN Brasil

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