Saudi oil outage impact following attacks on refineries not as bad as predicted

Posted on September 18, 2019 1:17 am

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The attacks on Saudi oil facilities that led to the largest ever disruption in oil markets might not last for several months, and therefore, additional supply from the Strategic Petroleum Reserve isn’t necessary.

The outage at Abqaiq is not just a problem because of the immediate impact on production, but also because it takes much of the world’s spare capacity offline. According to Bloomberg, the most optimistic assessment puts global spare capacity at 3.9 million barrels per day (mb/d), but that includes half a million barrels of daily capacity from idled Neutral Zone oil fields, plus some optimistic assumptions about the