Malaysia’s Oil Production Fell 5.5% in Q1

Malaysia’s crude and condensate production dropped by 5.5% from a year earlier to 43 million barrels in the first quarter of 2026, due to a slump in crude output, the Department of Statistics Malaysia (DOSM) said on Friday.

Crude oil production dipped by 9.4% to 28.1 million barrels in the first quarter, down from 31.5 million barrels for the same period of 2025, the data showed. Condensate output increased by 3% to 14.9 million barrels, up from 14.4 million barrels in the first quarter of 2025.

Malaysia’s natural gas output fell by 2.1%, according to the official government statistics.

While crude output fell, the Weighted Average Lifting Price (WALP) for crude oil and condensate in Malaysia surged to $84.0 per barrel in the first quarter of 2026, up from $66.1 per barrel in the fourth quarter of 2025, as international benchmark prices jumped at the end of the first quarter amid the conflict in the Middle East.

Meanwhile, Malaysia has secured its fuel supply until the end of July, state energy firm Petronas has assured the economy ministry, as Southeast Asia is reeling from the worst supply disruption in the history of oil markets.

Malaysia’s Economy Minister Akmal Nasir told a regular briefing at the end of May that one of Southeast Asia’s biggest economies has secured energy supplies through the end of July and power reserves are enough to meet the current surge in electricity demand.

“Petronas has given its assurance that the country’s oil supply stock is sufficient until the end of July 2026,” Nasir said at the briefing, as carried by local media.

Petronas had said in April that Malaysia has enough energy supply until the end of June. Now the state oil giant has extended the projection by a month as it has secured more supply in recent weeks.

By Tsvetana Paraskova for Oilprice.com

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