World spare oil capacity slips, production up: EIA

Monday, 1 July 2013 00:05 - - {{hitsCtrl.values.hits}}

Reuters: Global spare oil production capacity slipped in May and June from the previous two months, but was above levels during the same period last year, the US government said on Thursday.

The spare capacity slipped to 2.4 million barrels per day in May and June, down about 0.4 million bpd from the previous two months, but up 0.3 million bpd versus May and June last year, the Energy Information Administration report said. Sam Napolitano, an EIA analyst, said the slip in spare capacity was mainly the result of adjustments in production from Saudi Arabia and other OPEC countries. The report, required every two months by the Iran sanctions law President Barack Obama signed in 2011, did not include additional capacity that may be technically available in Iran, which is off line due to U.S. and EU sanctions on the Islamic Republic’s oil sales. The sanctions are aimed at pressuring Iran over its nuclear program, which Tehran says is for power production and medical purposes. Iran’s liquid fuels production in May and June averaged 3.4 million bpd, of which 2.8 million bpd was crude. Those numbers were unchanged from the previous two months, the report said. Global production of liquid fuels averaged 89.9 million barrels a day in May and June, up about 1 million bpd from the previous two months, which the EIA revised up 0.7 million bpd to 88.9 million bpd. Global liquid fuels production outpaced consumption resulting in a 0.2 million bpd build in global oil stocks in May and June. Part of the gains came as production rose in some non-OPEC countries, including the United States, Sudan and South Sudan, the report said.