Key facts
- A tanker carrying over 540,000 barrels of Malaysian fuel oil is headed to the U.S. West Coast.
- This is the first such shipment from Malaysia to the U.S. in three years.
- The fuel oil is a low-sulfur and straight-run (LSSR) type, favored by refiners for producing gasoline, diesel, or marine fuel.
- Tight global supply and high refining margins are driving U.S. refiners to seek feedstock from distant sources.
- U.S. gasoline and diesel exports are at record levels amid tightening global fuel markets.
A significant shipment of fuel oil from Malaysia is en route to a U.S. West Coast refinery, marking the first such delivery in three years. The tanker Solomon Sea is carrying over 540,000 barrels of low-sulfur and straight-run (LSSR) fuel oil from Petronas' PRefChem refinery, with an expected arrival in early September.