Saudi Spare Oil Capacity

Stuart Staniford:

The sharp fall in OPEC output suggests that Saudi Arabia did little or nothing to compensate for the loss of Libyan output. So, as so often, we are left to wonder what the 3.2mb/d of supposed Saudi spare capacity really means if it's nowhere to be seen whenever the world actually needs it. It's sort of the unicorn of the oil world - the horn keeps getting longer in the telling, but we've never actually seen one.