Oil prices begin to steady:
The price of Brent crude has steadied at $86 a barrel, after the announcement of a cut in Saudi-Kuwait oil output.
Production at the Khafji oilfield has been stopped temporarily for environmental reasons.
The news was seen as a positive factor by traders at a time when crude oil production has exceeded demand.
Khafji oilfield has an output of 280,000 to 300,000 bpd (barrels per day) – which is just more than 2% of Saudi Arabia’s total production capacity.
It is unlikely to affect oil supplies from Saudi Arabia, the world’s top explorer, because the region has significant surplus capacity.
Abundant global oil supply coupled with a bad economic outlook from Europe to China pushed Brent to its lowest since 2010 last week with a loss of more than 25% since June.
Saudi Arabia pumped around 9.7 million bpd in September but says it has the ability to produce as much as 12.5 million bpd.
http://www.energyvoice.com/2014/10/oil-prices-begin-steady/
