OPEC: Global spare oil capacity shrinking

The supply and demand of oil reached the record

"The projections for 2019 clearly show a possible rebuild of stocks", he said of the supply and demand balance for next year. Brent crude breached four year highs to reach $86.74 a barrel earlier this month, the highest since 2014.

Barkindo, who spoke at the IHS CERA conference urged producers and companies to increase their production capacities and invest more to meet current demand.

Crude oil demand is expected to increase by 14.5 million barrels per day (bpd) from 2017 to 111.7 million bpd in 2040, OPEC said in its September report. Saudi Arabia has "a healthy spare capacity to serve as a buffer against any emergency", he added.

Barkindo, asked whether Trump's criticism of OPEC was unfair, said: "The market is now being largely driven by decisions taken elsewhere - outside OPEC, outside non-OPEC".


In the third quarter of 2018, the total global supply of oil reached 100.3 million barrels per day and production of "black gold" and hydrocarbons have reached a record high.

Russian Federation seems to be less concerned than Barkindo about the state of the crude market: on Tuesday Vadim Yakovlev, deputy chief executive for Gazprom Neft, said that his company's production has returned to record levels of 2016 before the former Soviet Union entered into the deal with OPEC to reduce output from the start of 2017. He added that the global oil sector needed $11 trillion in investment to meet future demand by 2040.

OPEC separately updated its oil supply and demand forecasts on Thursday, cutting demand estimates for next year due to economic challenges such as trade disputes and volatile emerging markets, and pointing to excess supply.

India has sought easier payment terms from oil suppliers to combat higher crude prices.

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