Crude oil supply losses could result in some OPEC nations having to draw from their spare production capacities, according to the International Energy Agency (IEA).
In its monthly report, the Paris-based IEA said disruptions in Venezuela, Iran and Libya will require other oil producing countries to increase their output. Covering the shortage in supply will most likely fall on Saudi Arabia, which already instated its largest output increase in three years last month.
This increase will have a drastic impact on the kingdom’s spare production capacity, which is usually left untouched in case of emergencies. The IEA, which oversees the release of these emergency stockpiles, has continued to express concerns over the potential issues further production could cause.