Malaysia’s total production of crude oil and condensate fell 5.5% year-on-year to 43.0 million barrels in the first quarter of 2026 (1Q26), according to the latest data from the Department of Statistics Malaysia (DOSM).
While a contraction in upstream crude output dragged down overall volumes, Malaysian energy players capitalised on a massive spike in global oil prices, which saw local lifting benchmarks surge by more than 27% quarter-on-quarter.
The total output of 43.0 million barrels in 1Q26 marks a clear drop from the 45.5 million barrels recorded during the same period in 2025. This contraction was driven entirely by a 9.4% slump in raw crude oil production, which fell to 28.1 million barrels.
Conversely, condensate production provided a minor buffer to the upstream segment, growing by 3.0% to reach 14.9 million barrels.
Meanwhile, Natural gas production recorded 765.8 billion cubic feet in 1Q26, translating to a 2.1% year-on-year decline. This represents a widening contraction compared to the negative 1.0% growth seen in the previous quarter, though DOSM highlighted that monthly momentum began picking up significantly toward March.
Despite lower asset yields, the financial return per barrel improved dramatically. The Weighted Average Lifting Price (WALP) for Malaysian crude oil and condensate surged to USD 84.0 per barrel in 1Q26, up sharply from USD 66.1 per barrel in the final quarter of 2025.
This pricing power closely mirrored an aggressive upward trend across international benchmarks:
Brent Crude: Rose to an average of USD 80.2 per barrel (up from USD 63.6 in Q4 2025).
West Texas Intermediate (WTI): Climbed to USD 72.0 per barrel (up from USD 59.6 in Q4 2025).
On the trade front, lower export volumes led to a moderate slide in total revenue compared to the bumper final quarter of 2025. Total outbound shipments of crude oil and condensate brought in RM5.2 billion, down from RM6.1 billion in Q4 2025.
However, Malaysia managed to sharply optimise its import bills, cutting inbound crude purchases by over 36% to save billions in foreign exchange
The drop in petroleum imports indicates a temporary tightening of local refinery inputs, mirroring a marginal step back in downstream refined petroleum product exports to RM22.9 billion. Despite these minor value contractions, the broader pricing environment ensures that Malaysia’s state energy revenues remain highly insulated heading into the second quarter of the year.
