The Singapore-flagged Hafnia Nile, was reportedly carrying naphtha, a highly flammable type of petroleum.
The cause of the collision is still unclear. Singapore maritime authorities said ship traffic in the busy waterway was unaffected.
However, Malaysian coastguard officials found an oil spill covering around 17 square kilometres.
Ceres I is a large crude oil carrying supertanker. Some reports suggests it could be part of a so-called ‘dark fleet’, carrying oil from countries under sanctions.
A market intelligence service, S&P Global Commodities at Sea, says the ship, operated by China’s Shanghai Prosperity Ship Management, has previously carried Iranian crude, which is subject to US sanctions.