Energy security: Petronas oil supply guaranteed until July as prices rise

KUALA LUMPUR: Petronas has assured the government that Malaysia’s national oil supply stocks are sufficient until July, Economy Minister Akmal Nasrullah Mohd Nasir said today.

Akmal said the assurance was conveyed during a meeting of the National Economic Action Council (MTEN), even as Brent crude oil prices continued climbing amid global geopolitical uncertainty.

He said Brent crude averaged US$111.67 per barrel for the week of May 18 to 22, up 1.7 per cent from US$109.85 the previous week.

The benchmark has remained above the US$100-per-barrel level for a sustained period, contributing to rising transportation costs and higher prices of goods.

Akmal said liquefied natural gas (LNG) prices, as measured by the Japan Korea Marker, also surged 6.7 per cent from US$17.86 to US$19.06 per million British thermal units due to regional demand pressure and supply concerns.

Coal prices, meanwhile, edged up 0.7 per cent to US$132.29 per metric tonne.

While describing the coal market as stable, Akmal said the government remained vigilant given coal’s critical role in Malaysia’s electricity generation sector.

On Friday, Deputy Prime Minister Datuk Seri Fadillah Yusof said Malaysia’s energy supply security was currently projected to remain sufficient until July, with efforts underway to secure additional resources from abroad.

Fadillah said the government was also working to ensure the country’s energy supply security could be extended until December.

Earlier today, oil prices plunged more than five per cent while Asian markets rose on hopes of a possible deal to end the conflict involving the United States and Iran, despite US President Donald Trump downplaying the likelihood of an imminent agreement.

Tensions in the Middle East intensified following large-scale attacks by the United States and Israel on Iran, which began on Feb 28.

In retaliation, Iran targeted US military bases across the region, launched missiles and drones at Israel, and disrupted nearly 20 per cent of global oil and LNG flows through the Strait of Hormuz.

© New Straits Times Press (M) Bhd

المصدر: New Straits Times