Malaysia will extend the period of oil production cuts for six months

Kuala Lumpur, Reuters reported that Malaysia will extend the period of oil production cuts for six months after the OPEC agreement with other oil producers to reduce global oil supply ends this year.

At a meeting in Vienna on Friday, OPEC and non-OPEC oil producers agreed to achieve new production cuts between January and June 2019, from the current 1.8 million barrels a day to 1.2 million barrels a day.

"Malaysia has agreed to continue to honour its voluntary commitment to reduce oil production by 15,000 barrels a day," Malaysian Minister of Economic Affairs Azmin Ali said in a statement on Saturday.

Malaysia is not a member of OPEC. In 2016, Malaysia, through its state-owned oil company, National Petroleum Corporation of Malaysia, announced that it would cut its oil production by 20,000 barrels a day as part of a commitment to reduce oil supply following an agreement between OPEC and non-OPEC oil producers.

The original agreement was led by Russia and extended for another year until the end of 2018.

"Although we are a small oil producer, Malaysia is still united with oil producers to achieve the strategic goal of global market stability for the benefit of all oil producers and consumers," Azmin said.