![](https://i.imgur.com/CLvY2jA.png")
11-06-2022, 08:14 AM
By Irina Slav - Jun 09, 2022, 7:00 PM CDT
- The decision by OPEC+ to boost its production quotas did not have the desired effect on oil markets, with prices having increased since then.
- One of the main reasons for this upward pressure is that the world’s spare oil production capacity is extremely tight.
- With so little spare capacity, the risk of Libya going offline or a major hurricane-induced disruption in the Gulf of Mexico has oil markets worried.
......
That the world's spare oil production capacity is quite tight has been known for a while now. There have been warnings that underinvestment in new oil exploration, in large part a result of the investor shift to ESG opportunities and government policies discouraging more investment in oil, will lead to lower spare capacity. Yet these warnings remained largely unheeded.
https://oilprice.com/Energy/Energy-Gener...igher.html
- The decision by OPEC+ to boost its production quotas did not have the desired effect on oil markets, with prices having increased since then.
- One of the main reasons for this upward pressure is that the world’s spare oil production capacity is extremely tight.
- With so little spare capacity, the risk of Libya going offline or a major hurricane-induced disruption in the Gulf of Mexico has oil markets worried.
......
That the world's spare oil production capacity is quite tight has been known for a while now. There have been warnings that underinvestment in new oil exploration, in large part a result of the investor shift to ESG opportunities and government policies discouraging more investment in oil, will lead to lower spare capacity. Yet these warnings remained largely unheeded.
https://oilprice.com/Energy/Energy-Gener...igher.html
