Higher oil prices will mean it will soon get more expensive at the pump [Xinhua]
Malaysia’s state oil company Petroliam Nasional Bhd announced that it would comply with the deal reached between OPEC and other global oil giants to cut output starting 2017 in order to stabilize prices.
The firm, known as Petronas, will be trimming output by 20,000 bpd starting January – a cut that amounts to a three per cent decrease from this year’s production.
The cut will be the second consecutive one for Petronas, Malaysia’s sole crude oil producer.
Earlier this month, OPEC agreed for the first time in eight years to cut output to stabilize global oil markets.
OPEC President Mohammed Bin Saleh Al-Sada said they will be cutting 1.2 million barrels a day starting January, bringing total output down to 32.5 million barrels a day.
Prices had reached beyond $56 a barrel immediately following an announcement by non-OPEC members to cut production by 558,000 barrels a day.
On Thursday, international benchmark Brent Crude fell to $55.05 a barrel.
Russia, the world’s largest oil producers, is to cut 300,000 barrels a day.
OPEC heavyweight Saudi Arabia has said it will cut output even further.
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