Crude oil production bore the brunt of the decline, falling 9.4% to 28.1 million barrels compared to the same period last year. This drop offset a modest 3% gain in condensate output, which reached 14.9 million barrels. Natural gas extraction mirrored the broader trend, retreating by 2.1% according to the Department of Statistics Malaysia.
Malaysia Oil Output Drops as Global Prices Surge
A 5.5% decline in Malaysia’s crude and condensate production left the nation with 43 million barrels in the first quarter of 2026. While raw output slumped, regional energy markets face heightened volatility, forcing the government to rely on strategic buffers to navigate the ongoing supply disruption across Southeast Asia.
Despite the reduction in volume, the Weighted Average Lifting Price for crude and condensate spiked to $84.0 per barrel, up from $66.1 in the final quarter of 2025. This price surge, driven by Middle East instability, has arrived alongside concerns over regional energy security. Economy Minister Akmal Nasir confirmed that Petronas has secured fuel stocks through the end of July, extending a previous projection by one month to ensure power reserves remain sufficient to meet current demand.
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