Malaysia’s oil supply remains stable until July, Petronas assures amid global energy tensions, says minister

KUALA LUMPUR, May 25 — Petronas has assured Putrajaya that Malaysia’s national oil supply stock is sufficient until July 2026 despite ongoing instability in West Asia and continued tensions around the Strait of Hormuz, Economy Minister Akmal Nasrullah Mohd Nasir said today.

Speaking during a livestreamed briefing after the 12th meeting of the National Economic Action Council (MTEN), Akmal said the government is continuing to monitor global developments closely as energy prices remain elevated amid geopolitical uncertainty.

“MTEN was informed that Petronas has given assurance that the nation’s oil supply stock is sufficient until July 2026,” he said.

Akmal said the average Brent crude oil price between May 18 and 22 stood at US$111.67 (RM441.74) per barrel, up 1.7 per cent from US$109.85 the previous week.

He said crude prices remaining above the US$100 mark have increased transportation costs and pushed up prices of goods globally, reflecting continued instability in the international energy market.

Meanwhile, the average price of Liquefied Natural Gas (LNG) based on the Japan Korea Marker rose 6.7 per cent from US$17.86 to US$19.06 per MMBtu due to regional demand pressures and concerns over supply disruptions.

Coal prices also edged up marginally by 0.7 per cent to US$132.29 per metric tonne.

“The market remains stable, but we remain cautious because coal is a key pillar of our electricity generation,” he said.

Akmal also said the benchmark FBM KLCI index fell 1.58 per cent, or 27.55 points, to 1,712.67 for the week ending May 22 as investors remained cautious amid the uncertain global climate.

Despite global pressures, he said Malaysia’s electricity supply remains stable and under control.

Maximum electricity demand between May 18 and 23 rose 3.62 per cent to 21,319MW, but remained below the national system limit of 21,469MW.

“There has been no sudden increase in electricity demand and existing reserve capacity remains sufficient to accommodate current needs,” he said.

On logistics, Akmal said port activities remained resilient despite rising shipping costs, insurance premiums and risks of global route disruptions.

Daily cargo handling rose 8.3 per cent to 848,900 freight weight tonnes (FWT), while container handling also increased 8.3 per cent to 93,100 TEUs as of April 2026.

However, he said the aviation sector is facing more visible pressure following cancellations involving West Asian routes.

Daily aircraft movements in April fell 31.5 per cent to 2,464 flights, while international air cargo handling dropped 14.3 per cent.

Domestic air cargo also declined 18 per cent due to higher fuel costs and operational adjustments by airlines.

Akmal added that Malaysia’s agricultural sector continues to serve as a buffer for the economy, recording 2.6 per cent growth in the first quarter of 2026 with contributions from strong performances in the palm oil and livestock subsectors.

He also noted that 7,057 workers lost their jobs in April, up 21 per cent from March, adding that the government would ensure the Employment Insurance System (SIP) and Perkeso’s Lindung Kerjaya programme continue functioning swiftly to assist affected workers.