While the U.S. is pumping at all-time highs, OPEC kingpin Saudi Arabia and Russia, the largest non-OPEC producer, may look to ramp up output to exploit higher prices and to fill some of the void created by plunging production in Venezuela.
“Looking at the spare capacity of the deal participants, Saudi Arabia, Russia, the United Arab Emirates (U.A.E.), and Kuwait appear to be the only producers with meaningful capability to raise output (as seen in the next charts). Iraq seems unable to increase capacity due to civil unrest,” according to SSgA. “Pipeline attacks and political turmoil limit opportunities to increase output in Libya and Nigeria, while Angola’s exports hit 10 year lows and they are currently producing nearly 160 thousand barrels per day below their ceiling.”
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