Malaysia: Petronas to cut output in 2017

Malaysia: Petronas to cut output in 2017

Malaysia's Petronas said it will voluntarily cut up to 20,000 b/d of crude
oil from the country's production beginning in 2017, stemming from a
decision made by the Organization of the Petroleum Exporting Countries
(OPEC) and non-OPEC producers earlier this month.

Following the pact made in Vienna, Austria on 10 December 2016 between OPEC
and non-OPEC producers, Petronas will make a voluntary adjustment to
Malaysia's crude oil production starting from January of 2017, the company
said.

"This voluntary adjustment, taking into consideration prevailing market
conditions and prospects, is expected to involve up to 20,000 b/d of crude
oil from the country's 2016 average production," Petronas said.

On 30 November, OPEC made a decision to implement a new OPEC-14 production
target of 32.5 MMb/d effective 1 January 2017 to accelerate the ongoing
drawdown of the stock overhang and bring the oil market rebalancing forward.
The reduction will cut output by some 1.2 MMb/d, from the current 33.64
MMb/d.

The landmark decision saw Brent crude increase 8% to US$50.47/bbl, and US
crude to rise 8.5% to $49.44/bbl at the end of November.

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com