What is the significance of PRefChem's fuel oil cargo heading to the U.S. in August 2024?

This shipment marks the first delivery of fuel oil from Malaysia's PRefChem refinery to the United States since May 2023, driven by tight global refinery feedstock availability amid disruptions linked to the U.S.-Iran war; the 540,000-barrel low-sulphur straight-run (LSSR) cargo departed on August 8 aboard the Solomon Sea from Vopak Dialog Pengerang terminal and is destined for a U.S. West Coast refinery, where it will serve as feedstock for higher-margin distillates like gasoline and diesel.

Why is this fuel oil shipment notable given PRefChem's typical operations?

PRefChem typically produces gasoline and diesel and only sporadically produces fuel oil; its atmospheric distillation unit was offline from June 21 to July 10, further underscoring the atypical nature of this fuel oil output — which has now been expanded through recent tenders offering three additional 540,000-barrel LSSR cargoes for August loading, indicating a strategic shift to capitalize on robust global refining margins and constrained feedstock supply.

Fuel Oil from Malaysia's PRefChem Refinery Heads to U.S. for First Time Since 2023

Aug 13, 2026

PRefChem shipped over 540,000 barrels of low-sulphur fuel oil to the U.S. West Coast, marking its first cargo there since May 2023 amid tight global feedstock supplies due to regional conflicts.

reuters

2026-08-13

Fuel Oil from Malaysia's PRefChem Refinery Heads to U.S. for First Time Since 2023

Fuel Oil from Malaysia's PRefChem Refinery Heads to U.S. for First Time Since 2023

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