Malaysian Fuel Oil Heads to US West Coast Amid Global Supply Crunch

A shipment of fuel oil from Malaysia's PRefChem refinery is headed to a U.S. West Coast refinery, marking the first such import in three years.

The cargo, which includes more than 540,000 barrels of low-sulfur and straight-run (LSSR) fuel oil, departed from Malaysia last week and is expected to arrive in early September.

U.S. refiners typically rely on imports from close exporting countries like Mexico and Venezuela, but a tight global fuel market has made Malaysian supply viable due to the arbitrage's wide margin.

The LSSR type of fuel oil is favored for its low sulfur content and minimal impurities, making it suitable for producing gasoline or diesel, or blending into low-sulfur marine fuel.