KUALA LUMPUR (Oct 18): Malaysia, which is a member of the Organization of the Petroleum Exporting Countries and allies (Opec+), has agreed to implement a production cut of two million barrels per day with effect from November.

This comes after the country participated in the 33rd Opec and Non-Opec Ministerial Meeting on Oct 5, during which the alliance unanimously agreed on the decision to cut production.

"Opec+ countries collectively took into consideration factors that included market fundamentals, particularly to address uncertainties in the global oil supply and demand situation," said Caretaker Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed in a statement on Tuesday (Oct 18).

Mustapa noted Malaysia supports Opec+'s long-standing initiative and proactive approach, including the document of cooperation (DOC) signed on Dec 10, 2016 that brought together the oil-producing countries to adhere to the robust mechanisms in dealing with market challenges.

In view of the prospect of prolonged uncertainties, he added that Malaysia will continue its close collaboration with Opec+ to ensure the stability of the global oil market.

In a statement on Oct 5, Opec listed out 10 items, with one of them being the decision to adjust downward the overall production by two million barrels per day from August's required production levels, starting from November for Opec and non-Opec participating countries.

This was in light of the uncertainty surrounding the global economic and oil market outlook, and the need to enhance the long-term guidance for the oil market, and in line with the successful approach of being proactive, and pre-emptive, which has been consistently adopted by Opec and non-Opec participating countries in the DOC.

As for Malaysia, it will cut its daily crude oil output by 27,000 barrels to 567,000 under the planned collective production reduction by Opec+.