Malaysia is looking for new fuel sources due to the global supply contraction triggered by the war in Iran. Economy Minister Akmal Nasir stated that the crude oil to be found must be of a quality that can be processed in the country's refineries.
Malaysia's refineries are heavily dependent on crude oil originating from the Middle East. After the closure of the Strait of Hormuz, a critical waterway for global oil and gas transportation, the reduction in supply from this route has led to decreased production in some refineries.
New Supply Channels Malaysia Is Exploring
Akmal Nasir said Malaysia is considering sourcing oil from various markets including African countries, Russia, and Turkey. The minister emphasized that the search is not only about finding sources but also ensuring that the oil is compatible with existing facilities.
"Searching everywhere is not enough; what matters is whether it suits our current facilities," Akmal explained, highlighting that refinery capacity is central to energy planning.
Stocks Sufficient Until End of July
The minister also noted that based on current agreements, the country's energy reserves are sufficient until the end of July. However, due to volatility in oil prices, the government is cautious about rushing into new long-term contracts.
This move by Malaysia reflects not only a search for new barrels but also a cautious energy strategy that simultaneously considers refinery compatibility and price stability.