PUTRAJAYA, 2 Dec (UdaBayas) – Malaysia has agreed to extend its oil production adjustments until 31 December 2018.

According to the press statement by the Minister in the Prime Minister’s Department, Datuk Seri Abdul Rahman Dahlan, this is in accordance with the decision to further extend the “Declaration of Cooperation” for another 9 months agreed during the 3rd OPEC and Non-OPEC Ministerial Meeting held in Vienna on 30 November 2017.

“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.

“Based on estimates, the extension of the production adjustments will facilitate the oil market to rebalance itself by end of 2018. This is one of the factors why the oil prices have firmed up since 2016,” he said.

Rahman also shared Malaysia’s views in agreeing to extend its participation in the production adjustments policy.

“Malaysia prefers a stable oil price at a reasonable level as price volatility is bad for national revenue projection. A stable and balanced oil price would facilitate economic budgetary planning whilst keeping inflation in check,” he added.

The meeting also marked the 1st anniversary of the Declaration of Cooperation between OPEC and Non-OPEC participating countries which was signed in December 2016.