IEA Trims OPEC Production Capacity Outlook

In addition to cutting demand estimates in its recent Oil Market Report, the International Energy Agency (IEA) sliced its forecasts for OPEC production capacity during 2013 by 1.07 mbpd since its December 2011 report. Baseline revisions and cuts in Iranian capacity, due to tighter sanctions, featured in the estimate reduction, which leaves AG capacity on a much slower trajectory. Combined with new refineries coming on line in the region, the new estimates imply a much lower level of crude export capacity available for VLCCs. Download here