Petronas to reduce crude oil output by 20,000 barrels per day

Petronas will reduce its output up to 20,000 barrels per day of crude oil

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) will reduce its crude oil output up to 20,000 barrels per day starting from January 2017 in line with the oil producers' move to shore up oil prices.

The national oil company said on Wednesday the  the voluntary adjustment was based on the prevailing market conditions and prospects and based on Malaysia's average production for this year.

Petronas said the adjustment followed the pact made in Vienna, Austria on Dec 10 between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers.

OPEC and other producers led by Russia have announced cutbacks of almost 1.8 million barrels per day (bpd) in oil production from January 2017.

The cutbacks are to bolster prices to reduce rampant global overproduction which has seen output outstrip consumption for over two years.