Is IEA Overhyping OPEC's Spare Capacity?

OPEC's spare oil production capacity is the go-to argument by many analysts when the threat of higher prices rears its head. The latest International Energy Agency monthly report was no exception. But the IEA, like all those analysts, may be overplaying the spare capacity hand. Because to make it work, OPEC has to want to use it. The IEA said in its October Oil Market Report out Tuesday that the global oil market is now quite comfortably supplied thanks to declining Chinese demand growth. This was a development only to be expected after a massive…