Summary: TEHRAN (FNA)- The International Energy Agency (IEA) warned against the considerable impact of the US plan to impose targeted crude sanctions against Iran, saying that it could exhaust the world's spare oil capacity cushion
The global energy watchdog however said the disruptions underscored the pressure on global supplies as the world's spare production capacity cushion
"might be stretched to the limit".
"Rising production from Middle East Gulf countries and Russia, welcome though it is, comes at the expense of the world's spare capacity cushion
, which might be stretched to the limit," the Paris-based IEA said in its monthly report.
"We expect it to be able to maintain that capacity cushion
through the five year forecast horizon.
* Increased capacity cushion
controls that reduce field adjustment errors and maximize life.
Under pressure to make up for supply losses from Libya, Iran, Nigeria and Yemen over the past few years and to meet growing domestic demand, Aramco is investing heavily to preserve the world's largest spare oil production capacity cushion
at more than two million bpd.
Sources told Reuters that Saudi Arabia, which has the largest spare capacity cushion
in the Organization of Petroleum Exporting Countries, had trimmed production by around 500,000 barrels per day to around 8.5 million bpd on the back of slow demand.
RBC Capital Markets analyst Kurt Hallead believes that Saudi Arabia is "looking to increase oil production capacity in an effort to offset lost production in Libya, create a larger spare capacity cushion
and stem a spike in global oil prices."
The amount of capacity in excess of expected demand is the operation's capacity cushion
. The common view of capacity cushion
associates it with resources such as floor space, equipment, and people.
The kingdom has the largest spare capacity cushion
it has held for years, so it can burn more crude at home with no impact on its supplies to international markets.
The lift trucks are available in 3,000- to 8,000-pound capacity cushion
tired models and also in 3,000-, 3,500-, 4,000-, and 5,000-pound pneumatic models.
"We believe oil markets may have entered the early stages of what we have referred to as a 'super spike' period--a multiyear trading band of oil prices high enough to meaningfully reduce energy consumption and recreate a spare capacity cushion
only after which will lower energy prices return," said company analysts.