A gas flame is seen in the desert near the Khurais oilfield, about 160 km (99 miles) from Riyadh.(REUTERS/Ali Jarekji)
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The world's unused spare oil production capacity would struggle to cover another big outage, industry officials and analysts say, increasing the chance governments may tap strategic reserves should Iraq's southern exports be disrupted.Unrest in Iraq comes as the almost total loss of Libyan supply, Western sanctions on Iran as well as conflict in Syria and northern Iraq are keeping almost 3 million barrels per day – more than 3 percent of world demand – off the market.Global spare production capacity stands at 3.3 million bpd, the International Energy Agency estimated in June. Iraq produces about 3.3 million bpd and exports about 2.5 million bpd from its southern terminals around Basra.Of the 3.3 million bpd of spare capacity the IEA estimates is available, some 2.65 million bpd is in Saudi Arabia, the world's largest exporter.As a result, readily available spare capacity may be less than the IEA's official estimates.
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