M’sia agrees to extend oil production adjustments

PUTRAJAYA: Malaysia has agreed to extend its oil production adjustments until the end of 2018 to help achieve price stability and sustainability, said Minister in the Prime Minister’s Department Datuk Seri Abdul Rahman Dahlan.

This agreement was achieved during the 3rd Opec and non-Opec ministerial meeting held in Vienna, which Abdul Rahman attended on behalf of the Government.

This was in accordance with the decision to give a further nine-month extension to the Declaration of Cooperation, he added.

“The production adjustments extension is needed to reduce oil inventory to a more reasonable level.

“This will provide stability and sustainability in terms of oil price as well as its demand and supply,” he said in a statement.

Between January and October this year, Opec and non-Opec countries managed to reduce the inventory by more than 600 million barrels.

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

This is one of the factors why oil prices have firmed up since 2016, Abdul Rahman explained.

“At the meeting, I shared the Government’s views in agreeing to participate in the production adjustment policy.

“Malaysia is not keen to see the price of oil reaching US$100 (RM408) or more per barrel but at a stable price,” he said.

Meeting of minds: Abdul Rahman signing the agreement during the Opec and non- Opec ministerial meeting held in Vienna, Austria. With him is Saudi Arabia’s Energy, Industry and Mineral Resources Minister Khalid Al-Falih.