Kuala lumpur: Malaysia's fuel supply remains stable despite lower global supply levels, with the government confident it can secure sufficient supplies through to the end of the year, said the Prime Minister's economic adviser Nurhisham Hussein. Nurhisham, who also heads the Secretariat of the National Economic Action Council (MTEN) Crisis Management Task Force, said the global fuel situation has remained fluid. Risks, however, remained skewed towards higher prices due to geopolitical tensions and disruptions to key shipping routes, he added.

According to BERNAMA News Agency, Malaysia is a major importer of crude oil but is a net exporter of liquefied natural gas (LNG). Global oil supplies have been severely affected due to the West Asia conflict, which erupted in February and has shown no signs of ending, with continued attacks between the United States and Iran. Nurhisham reckons that countries are likely to rebuild their oil reserves only when prices return to more reasonable levels of around US$80 per barrel.

Nurhisham noted that the slow rebuilding of reserves implies that oil prices will continue to be elevated over the next two to three years, though they might not surge dramatically. He emphasized the fluid nature of the situation concerning fuels, highlighting concerns over the Suez Canal and Bab-el-Mandeb, which have remained open despite threats. Other factors affecting global oil supplies include damage to Russian facilities and the United States' blockade of Iranian exports.

During a media briefing on the global supply crisis, Nurhisham mentioned that the depletion of reserves would eventually eliminate one source of supply, increasing uncertainty in the global energy market. He also shared insights on China's rapid adoption of electric vehicles (EVs), which has contributed to moderating global oil demand. The significant increase in EV purchases among Chinese consumers has helped alleviate oil demand pressures.

Additionally, Nurhisham pointed out that Chinese refineries have been operating at about 80 to 90 percent capacity due to external demand, leading to increased exports. This operational capacity has played a role in influencing global oil demand dynamics.