Dwindling OPEC+ Spare Capacity Sets Oil Up for Sizzling Summer
- Members from Nigeria to Russia face output constraints
- Production buffer may shrink to lowest since 2018 by July
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As they strain to restore oil production, OPEC and its allies are being left with a diminishing buffer of spare supplies -- potentially setting up crude prices for a sizzling summer.
With depressed investment and internal unrest hobbling coalition members from Nigeria to Russia, the task of satisfying the vigorous recovery in world fuel consumption is down to just a few Middle Eastern producers. As they raise production, the buffer of untapped supplies held back to cover any emergency disruptions will grow ever-more precarious.