OPEC has 'buffer' capacity to offset Iran supply shortage

OPEC has enough spare production capacity to cushion oil markets, Bloomberg reported, citing UAE Energy Minister Suhail Al Mazrouei.

“Don’t worry about supply. I don’t think there will be issues as a result of sanctions. OPEC has an adequate 'buffer' of potential output, he said.

Al Mazrouei, who declined to quantify OPEC’s unused production capacity, said the issue will be discussed during their June meeting.

"OPEC 'can find a solution'” to offset the impact US sanctions would have on supply. That’s not what we’re concerned about. What we’re concerned about in the next meeting is, what’s the right level of inventories that we should see, and can we put this group together for longer?” he added.

Separately, Russia’s acting Energy Minister Alexander Novak said he plans to discuss the US exit from the Iran accord in detail with Saudi Energy Minister Khalid Al-Falih during the St. Petersburg International Economic Forum, which runs May 24-26.

Last week, US President Donald Trump announced plans to withdraw from the Iran nuclear accord and re-impose US sanctions on OPEC’s third-biggest producer.