Saudi Arabia will be “reluctant to exhaust” its “substantial” spare capacity, according to oil and gas analysts at BMI Research. “Questions are being asked as to the extent to which Saudi Arabia will increase its production, to offset shortfalls elsewhere in the market,” the analysts said in a report sent to Rigzone. “We believe that, while a large volume of barrels will be returned over the coming months, likely upwards of 1 million barrels per day, the Kingdom will be reluctant to exhaust its substantial spare capacity,” the analysts added. In the report, BMI said Saudi Arabia has sufficient capacity to keep the market “comfortably supplied”, but said the benefits of this are outweighed by the costs. “The Kingdom has reaffirmed that it holds 2 million barrels per day of spare capacity, which implies total capacity of around 12 million barrels per day. Full utilization would be sufficient to […]