Malaysia agrees to extend oil output adjustments till December 31, 2018

06-Dec-2017 Intellasia | NST | 6:00 AM Print This Post

Malaysia has agreed to extend its oil production adjustments until 31 December 2018.

This is in accordance with the decision to further extend the “Declaration of Cooperation” for another 9 months agreed during the 3rd Organisation of the Petroleum Exporting Countries (OPEC) and Non-OPEC ministerial Meeting held in Vienna on 30 Nov, said minister in the prime minister’s Department Datuk Seri Abdul Rahman Dahlan.

The minister represented Malaysia in the ministerial meeting while senior officers from Petronas and EPU (Economic Planning unit) attended the technical meetings a day before the ministerial meeting.

“The production adjustments extension is needed to reduce oil inventory to a more reasonable level which will provide stability and sustainability in terms of price, as well as demand and supply,” he said in a statement, yesterday.

Rahman said for the period between January and October 2017, OPEC and Non-OPEC countries managed to reduce the inventory level by more than 600 million barrels.

He said based on estimates, the extension of the production adjustments will facilitate the oil market to rebalance itself by end of 2018.

“This is one of the factors why the oil prices have firmed up since 2016″.

During the ministerial meeting, Rahman also shared Malaysia’s views in agreeing to extend its participation in the production adjustments policy.

“Malaysia is not keen to see the price of oil reaching USD100 or more per barrel like before. Malaysia prefers a stable oil price at a reasonable level as price volatility is bad for national revenue projection. A stable and balanced oil price would facilitate economic budgetary planning whilst keeping inflation in check,” he said.

The meeting also marked the 1st anniversary of the Declaration of Cooperation between OPEC and Non-OPEC participating countries which was signed in December 2016.

During the inaugural meeting, Malaysia committed a voluntary reduction of its crude oil and condensate production by 20,000 barrels per day.


Category: Malaysia

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