Malaysia agrees to ex­tend its oil out­put cut by six months

Business Standard - - WORLD - JOSEPH SIPALAN

Malaysia will ex­tend its oil pro­duc­tion cuts by an­other six months af­ter the agree­ment be­tween OPEC and other oil pro­duc­ers to re­duce global sup­ply ends this year. OPEC and non-OPEC pro­duc­ers agreed at a meeting in Vienna on Fri­day to a new level of pro­duc­tion cuts from Jan­uary to June 2019, set­ting it at 1.2 mil­lion bar­rels per day from the cur­rent rate of 1.8 mil­lion bar­rels per day.

"Malaysia has agreed to con­tinue its vol­un­tary com­mit­ment by re­duc­ing its total oil out­put by 15,000 bar­rels per day," Azmin Ali, minister of eco­nomic af­fairs, said in a state­ment on Satur­day.

Malaysia is not an OPEC mem­ber. In 2016, via its stateowned oil com­pany Petro­liam Na­sional Ber­had, Malaysia an­nounced that it would cut oil out­put by 20,000 bar­rels per day as part of its com­mit­ment to re­duce sup­ply fol­low­ing an agree­ment be­tween the Or­ga­ni­za­tion of Petroleum Ex­port­ing Coun­tries (OPEC) and non-OPEC pro­duc­ers.

The ini­tial agree­ment, led by Rus­sia, was later ex­tended for an­other year till the end of 2018. "Even though we are a small oil pro­duc­ing coun­try, Malaysia stands in sol­i­dar­ity with oil pro­duc­ing coun­tries in pur­su­ing the strate­gic ob­jec­tive of achiev­ing global mar­ket stability,” Azmin said.

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