Global spare oil production capacity is running "ridiculously thin" at less than 2% of demand,...


Global spare oil production capacity is running "ridiculously thin" at less than 2% of demand, potentially offsetting the impact on overheating oil prices of any further increases in supplies, says Barclays head of commodities research Paul Horsnell. Any further announcements of increased Saudi supply are unlikely to have much of an impact on oil prices from here on, he adds.

Comments (5)
  • Moon Kil Woong
    , contributor
    Comments (13372) | Send Message
     
    Why should they pump spare capacity. Oil companies can pump over 10% more oil if they wish. This capacity thinness argument is just a prop piece for trying to jack up oil prices for speculators.
    22 Mar 2012, 05:03 PM Reply Like
  • XTigerX
    , contributor
    Comments (311) | Send Message
     
    I have to agree with you Moon. Yesterday Barclays and Credit Suisse declared they don't trust the gov't demand numbers (that show lower demand YOY ). It looks looks like they are in damage control mode.
    22 Mar 2012, 07:31 PM Reply Like
  • buyitcheap
    , contributor
    Comments (1902) | Send Message
     
    Amen Moon - completely agree.
    23 Mar 2012, 12:28 AM Reply Like
  • untrusting investor
    , contributor
    Comments (9903) | Send Message
     
    Why should oil producers in any country sell oil for less with currencies of every major country being devalued more and more and more?
    23 Mar 2012, 01:50 AM Reply Like
  • captiankirkoptions
    , contributor
    Comments (241) | Send Message
     
    You got it right Moon - Ridiculous comments by Barclays.
    23 Mar 2012, 09:59 AM Reply Like
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