The post-COVID rebound in economies and oil demand have left global spare oil production capacity at very low levels with a very small cushion to absorb possible supply-side shocks in the near term. Despite the economic slowdown already underway in many parts of the world and fears of recessions in Europe and the United States, oil prices haven’t fallen too far below $90 per barrel.
Fears of supply disruptions have increased as much as fears of recessions that could slow oil demand growth. The thinnest spare capacity cushion in years is supportive…Razor-Thin Spare Capacity To Keep Oil Prices Elevated
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