en.Wedoany.com Reported - On August 8, a cargo of over 540,000 barrels of low-sulfur straight-run fuel oil departed from Pengerang Port in Malaysia, destined for a refinery on the US West Coast, with an expected arrival in early September. This marks the first time Malaysia's PRefChem refinery has supplied this type of fuel oil to the United States since May 2023.

The cargo was transported by the tanker "Solomon Sea," loaded at the Vopak Dialog Pengerang Terminal. The product supplied is low-sulfur straight-run fuel oil, primarily used as secondary processing feedstock for refineries, which can be utilized to produce gasoline and diesel, as well as blended to produce low-sulfur marine fuel. The specific purchasing company and receiving refinery have not been named.

The PRefChem refinery, located in Pengerang, Johor, Malaysia, has a crude oil processing capacity of 300,000 barrels per day, primarily producing refined products such as gasoline and diesel, and only sells fuel oil during certain production cycles. The refinery was previously shut down from June 21 to July 10, and after resuming production, it sold multiple cargoes of low-sulfur straight-run fuel oil for August loading through tenders. In addition to the cargo destined for the United States, three other cargoes are planned for loading in August.

US refining companies typically import fuel oil as processing feedstock from closer supply sources such as Mexico and Venezuela. Recently, tightening feedstock supply for global refineries, coupled with rising refining margins driven by peak summer demand for refined products, has led US refineries to increase unit utilization, boosting demand for low-sulfur straight-run fuel oil. This has made the transoceanic shipment from Malaysia to the US West Coast commercially viable.

This shift in trade flows is also related to disruptions in Middle East oil transportation. Interruptions in shipping through the Strait of Hormuz have reduced some Middle Eastern crude oil and fuel oil supplies, prompting refineries to broaden their feedstock procurement scope. PRefChem previously sourced part of its crude oil from the Middle East and has been adjusting its crude procurement and product sales arrangements since 2026.