KUALA LUMPUR: Malaysia’s petroleum supply remains stable despite the renewed conflict between the United States and Iran that triggered an over 5% increase in Brent crude oil prices last week.
Putrajaya is also undertaking several approaches to ensure the security of petroleum supply.
Economy Minister Akmal Nasrullah Mohd Nasir said the energy market has become volatile again last week following the renewed attacks.
“The average Brent crude oil price increased by 5.9%, from US$69.82 per barrel to US$73.94 per barrel for the period from July 6 to July 10,” he said in during his global supply briefing after the National Economic Action Council (MTEN) meeting in Parliament on Monday(July 13).
“This increase occurred following renewed attacks by the United States against Iran, which revived market concerns over maritime security and the risk of supply disruptions through the Strait of Hormuz,” he added.
However, he said the country’s petroleum supply remains stable and sufficient to meet domestic requirements.
“The government will continue to ensure supply security until December 2026 through three approaches currently being implemented, namely diversifying import sources, optimising domestic fuel production, and strengthening long-term supply agreements,” he said.
“The government will remain vigilant regarding current developments, as global markets continue to face physical supply constraints and ongoing declines in oil inventories,” he added.
Akmal Nasrullah said the average price of liquefied natural gas (LNG) had also increased by 7.9%, from US$16.05 to US$17.31 during the same period. The increase was driven by global market efforts to replenish storage levels that had previously been utilised.
“Coal prices, meanwhile, remained stable, from US$128.97 to US$128.86 per tonne. This was supported by moderate demand from China and India, following higher domestic production and inventories in both countries,” he said.
Peak electricity demand in Peninsular Malaysia for the period from 6 to 11 July increased by 2.5% to 20,832 megawatts, compared with 20,325 megawatts in the previous week. This increase remains manageable and is within the country’s electricity supply reserve margin,” he added.
The United States and Iranian forces exchanged heavy missile and drone attacks over the weekend, raising fears of escalating tensions.
Tehran said it has once again closed the Strait of Hormuz, which handles one fifth of the global daily oil and liquefied natural gas supplies.
