تاثير ظرفيت هاي مازاد توليد نفت بروي رفتار توليدات اوپك

The Impact of Excess Production Capacity on OPEC5S Production Behavior

One of the important factors that influence the oil market is excess production capacity of OPEC. Excess production capacity is what allows OPEC to effectively intervene in the oil market to control sharp price fluctuations. At times of sudden supply disruptions, OPEC is able to compensate the shortage through raising production closer to capacity. Non-OPEC countries have not followed such a policy and thus it is only OPEC that can intervene to smooth out supply and demand by virtue of its excess production capacity. The insight of this article indicates that any reduction in the excess production capacity of OPEC reduces its ability to stabilize the market in the face of supply and demand shocks. In order to maintain OPECʹs market power it is important that OPEC member countries attract capital and use modern technology to increase their production capacity, thus continuing to have an appropriate level of excess capacity.