Petronas output cut poses minimal impact to government reserve

Dec 22, 2016
He said the impact of the reduction would be compensated by a rise in crude oil prices.
He said the impact of the reduction would be compensated by a rise in crude oil prices.

Second Finance Minister Johari Abd Ghani says Petroliam Nasional Bhd’s (Petronas) plan to reduce output in January 2017 would not significantly affect the government’s reserve.

Speaking to reporters today, he said the impact of the reduction would be compensated by a rise in crude oil prices.

“Petronas produces almost 500,000 barrels per day and the cut is slightly below five per cent.

“We have seen an increase in crude oil prices (recently) and expect the impact from the reduction to be minimal,” he told reporters at the 20th anniversary of the Rapid KL LRT Ampang Line here today.

Among those present at the event was Prasarana Malaysia Bhd President and Group Chief Executive Officer, Azmi Abdul Aziz, as well as former Kuala Lumpur Mayor, Elyas Omar.

On Wednesday, Petronas indicated it may cut up to 20,000 barrels per day ofcrude output beginning next month.

Petronas said the voluntary adjustment to the country’s crude oil production was a response to the pact between the Organisation of the Petroleum Exporting Countries (Opec) and non-Opec producers on Dec 10 to slash output. — Bernama

 

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