Malaysia agrees to extend oil output cuts until end-2018

January 23, 2018

Dateline 2017-12-02, Kitco:

Malaysia will extend its oil production cuts until the end of 2018, in line with its commitment to reduce global supply as part of a deal struck between OPEC and other global oil producers.

OPEC and non-OPEC producers led by Russia agreed on Thursday to extend oil output cuts until the end of 2018 as they try to clear a global glut of crude, while still signalling a possible early exit from the deal if the market overheats.

OPEC and Russia combined produce over 40 percent of global oil.

“The production adjustments extension is needed to reduce oil inventory to a more reasonable level which will provide stability and sustainability in terms of price, as well as demand and supply,” Abdul Rahman Dahlan, a minister in the prime minister’s department said in a statement issued on Friday.

 


Malaysia’s Petronas to adjust output after oil cut deal

January 13, 2017

Dateline 2016-12-19, Yahoo! News:

Malaysian state-owned oil firm Petroliam Nasional Bhd said on Tuesday it would adjust crude oil production in line with an agreement between OPEC and non-OPEC producers to reduce global supply.

“Petronas will make the necessary adjustment to the country’s crude oil production level in line with the agreement reached between OPEC and non-OPEC producers…towards a more stable oil market,” it said in an emailed statement.

“The voluntary adjustment is expected to be implemented beginning from January 2017, taking into account prevailing market conditions and prospects.”

The Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers reached a deal on Saturday to jointly reduce crude oil output to ease a global supply glut which has seen oil prices halving in the last two years.

(Reporting by Emily Chow; Editing by Biju Dwarakanath)


Oil output cut: M’sia to gain in form of lower depletion rate

January 10, 2017

Dateline 2016-12-19, NST:

NON-Organisation of the Petroleum Exporting Countries (Opec) producers, including Malaysia, will stand to gain from the recent agreement by the cartel to cut production. “Malaysia’s oil and gas (O&G) sector, including the supporting industries, will benefit from higher oil prices even with a lower production volume. The net impact depends on the relative volume or prices,” Sunway University Business School economics professor Dr Yeah Kim Leng told Business Times yesterday. Malaysia and 10 other non-Opec producers agreed on Saturday to cut their oil output with the aim of ending the crude glut and reversing the fall in income, following the Opec agreement.

 


Landmark Opec deal fuels local O&G stocks

January 7, 2017

Did you catch the price rise wave, or mistimed and was caught in the trough?

Dateline 2016-12-02, NST:

Oil and gas (O&G) stocks rallied yesterday after Organisation of the Petroleum Exporting Countries (Opec) agreed on Wednesday to cut output for the first time in eight years.

Among the gainers were Deleum Bhd, Dayang Enterprise Holdings Bhd, UMW Oil & Gas Corp Bhd, SapuraKencana Petroleum Bhd and Uzma Bhd.

Leading the pack was Deleum, with the counter jumping 10.5 sen, or 12.8 per cent, to 92.5 sen, with 4.97 million shares traded.

Crude oil prices steadied around US$53 (RM236.90) a barrel yesterday, holding on to big gains made after Opec and Russia agreed to restrict production.

In the meeting, Opec members agreed to cut oil output by almost 1.2 million barrels per day from January to June next year.


OPEC: Four more years of cheap oil

January 28, 2016

It takes that long to kill Western producers, eh? And PETRONAS, while you’re at it.

Dateline 2015-12-24, FMT:

The OPEC oil cartel sees only a gradual improvement in the global crude market, with prices recovering to above $70 per barrel after four years, according to a report released Wednesday.

With the global benchmark oil price touching an 11-year low of $36.04 on Monday, the cartel which produces a third of the world’s crude said that it foresees a “gradual improvement in market conditions as growing demand and slower than previously expected non-OPEC supply growth eliminate the existing oversupply and lead to a more balanced market”.

The Organization of the Petroleum Exporting Countries, in its annual World Oil Outlook report, bases its reference scenario on $70.70 for a barrel of crude in 2020 and $95 in 2040.

Those projections represent a sharp drop in market value compared to last year’s report, which predicted a nominal price of $110 for the rest of this decade.

The oil market has been rife with drama over the past year and a half as OPEC abandoned its policy of cutting production to support prices, with the price of a barrel of crude plunging more than 60 percent.


Maslan confident oil won’t dip below US$40/barrel

April 2, 2015

Pick up your Lumia 530, and Cortana “oil price”. Then Cortana “who sells seashells by the seashore?”

Dateline 2015-01-29, FMT:

Deputy Finance Minister Ahmad Maslan has expressed his confidence that the crude oil price will not fall below US$40 a barrel this year. He said instead, it would not exceed the crude oil price assumption of US$55 a barrel used by the government in the 2015 Budget revision as announced recently.

“If the price of oil were to fall below US$40 a barrel, oil companies will not be able to produce oil because the cost will be higher than the revenue.

“I am confident that the Organisation of the Petroleum Exporting Countries (OPEC) will also not allow the price to fall below that level,” he told Bernama after an interview on the ‘Dalam Radar’ programme over Radio24.

 

 


OPEC, non-OPEC oil producers agree ‘price is not good’

February 14, 2015

Duhh.

Dateline 2014-11-26, FMT:

Venezuelan Foreign Minister Rafael Ramirez said Tuesday that OPEC members and non-member producers agreed that the price of crude oil “is not good”.

“We agreed that the price is not good. Everybody is worried,” he told reporters after OPEC members Saudi Arabia and Venezuela met with officials from fellow oil producers Russia and Mexico in Vienna against a backdrop of sliding crude prices.

“We discussed the situation on the market, we shared our points of view and we agreed to keep in contact, and we will meet again in three months,” he added.

The meeting came two days before the Organization of Petroleum Exporting Countries was to hold its most significant meeting in recent years to decide on whether to cut the cartel’s oil production to help stabilise tumbling prices.

OPEC pumps out about one-third of the world’s oil while Russia is itself a major producer.