OPEC's new offer to curb crude oil prices could soon deplete the world's free capacity cushion, according to the latest monthly report from the International Energy Agency (IEA).

When the free capacity is high, it acts as a shock absorber for the energy market. But this cushion has shrunk significantly in recent months due to a flood of failures in Venezuela, Libya and Canada.

And as OPEC and Russia are now ramping up production, even small disruptions in key oil-producing countries could lead to higher prices.

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