U.S. West Coast Refiners Tap Malaysian Supply
A cargo of fuel oil from Malaysia is making its way to a refinery on the U.S. West Coast in the first such shipment in three years as global supply of feedstock for refineries has tightened in recent months due to the closure of the Strait of Hormuz. The Solomon Sea tanker, laden with more than 540,000 barrels of low-sulfur and straight-run (LSSR) fuel oil, departed from Malaysia’s PRefChem…
A cargo of low-sulfur fuel oil from Malaysia has arrived at a U.S. West Coast refinery, marking the first such shipment in three years. The 540,000-barrel tanker departed from Petronas' PRefChem refinery in Malaysia last week and is set to reach American shores in early September. This marks the first time Malaysian fuel oil has reached U.S. refineries since 2023, according to shipping data reviewed by Reuters.
In the current tight global fuel market, U.S. refiners have turned to Malaysian supply due to soaring refining margins and peak seasonal demand. U.S. refiners typically source fuel oil from closer exporting countries like Mexico and Venezuela. The LSSR fuel oil in question is highly prized for its low sulfur content and minimal impurities, making it a favored feedstock for producing gasoline, diesel, or blending into low-sulfur marine fuel.
As U.S. gasoline and diesel exports surge to record levels amid global fuel market tightening, U.S. refiners are actively seeking quality feedstocks from various sources.
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