Malaysia Sees Stable Fuel Supply but Elevated Oil Prices for Years

The global fuel supply remains fluid and volatile due to geopolitical tensions and disruptions to key shipping routes. Malaysia, being a major importer of crude oil, is confident it can secure sufficient supplies through the end of the year.

Nurhisham Hussein, Prime Minister's Office Economic Advisor, stated that 'risks are skewed towards higher prices' and predicted that oil prices will remain elevated for two to three years. This is because countries will likely rebuild their oil reserves only when prices return to more reasonable levels of around $80 per barrel.

The economic adviser noted that the Suez Canal and Bab-el-Mandeb have remained open despite continuing threats, but damage to Russian facilities and the United States' blockade of Iranian exports could affect global oil supplies. He also mentioned that China's rapid adoption of electric vehicles (EVs) is helping to moderate global oil demand.