OPEC's Plunging Spare Capacity Poised to Boost Forward Oil Curve
- Group expected to lift output at meeting on Friday in Vienna
- Doing so will serve to highlight diminishing spare capacity
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What happens if the Organization of Petroleum Exporting Countries can’t pump enough oil?
The producer group meets in Vienna on Friday with Saudi Arabia leading a push to open the taps a little following a 60 percent surge in futures over the past year. If the world’s biggest exporter gets its way, then the resulting output increase will act as a stark reminder that OPEC’s spare capacity may soon be the smallest in three years. It could also be bullish for the price of oil along the forward curve.