OPEC+ may be running out of spare oil capacity - Jan 20

[dan_s]

Trading Economics:
WTI crude futures slipped towards $86 per barrel on Thursday, easing from an over seven-year high of $87.90 touched on Wednesday, as investors paused for breath following a recent rally. Still, prices should remain close to their highest since 2014, supported by ongoing supply concerns and prospects of strong demand. The International Energy Agency (IEA) on Wednesday said that OPEC+ produced about 800,000 barrels per day (bpd) below its production targets in December, and that the oil market could be in a significant deficit in the first quarter of this year. In addition, heightened geopolitical tensions following an attack by Yemen's Houthis on the United Arab Emirates have also provided some support. On the data front, both the API and EIA reports showed US crude stocks unexpectedly rose last week.