Saudi Arabia, Emirates Can Calm World Oil Market Volatility -IEA Says

The International Energy Agency (IEA) announced on Friday that the Kingdom of Saudi Arabia and the United Arab Emirates could help to calm volatility, in the world oil markets, if they are to pump more crude.

Saudi Arabia and the Emirates, the two oil producers with the largest spare production capacity, can help limit the dwindling of global oil stocks, which contributed to the rise of prices to about $100 a barrel, raising global inflation level.

 Such risks, which have broad economic repercussions, can be reduced if producers in the Middle East, who have excess production capacity compensate for those needs, the Paris-based agency said, in its monthly oil report, quoted by Reuters.

The agency added that their actual spare production capacity may drop to 2.5 million barrels per day by the end of the year, which is held almost entirely by Saudi Arabia, and to a lesser extent by the Emirates.