Petronas to cut oil output by 20,000 barrels per day

Kuala Lumpur

THE decision by Petronas Nasional to cut its oil production by 20,000 barrels per day (bpd), while largely symbolic, underscores its commitment to the joint effort by the Organization of the Petroleum Exporting Countries (Opec) and other oil-producing nations to stem the glut.

An oil analyst said the Malaysian national oil company's proposed reduction is likely to be covered by higher prices once global supplies contract. Petronas announced that the voluntary adjustment to Malaysia's crude oil production would start from January 2017, and follows from the pact made in Vienna on Dec 10 between Opec and non-Opec producers.