SOUTH AFRICA HOLDS OIL RESERVES UNTIL PRICES HIT $100 PER BARREL
South Africa will maintain its strategic crude oil reserves until global prices reach approximately $100 per barrel, according to senior energy officials. The country has been seeking to sell crude since 2022 when the government cushioned consumers from high fuel prices by temporarily cutting fuel levies, with revenue to be recouped through strategic reserve sales.
Current global crude prices have declined significantly in recent weeks due to concerns about potential U.S. trade wars impacting global economic growth. Brent crude was trading around $66 per barrel, well below the $99 average seen in 2022 when the initial sales strategy was implemented.
“The oil price is too low, so if you sell today you are going to empty the tanks,” explained Godfrey Moagi, CEO of the state-owned South African National Petroleum Company. “So we have to sell at the right level to make sure we still have strategic stocks. We are looking to sell at around $100 a barrel.”
South Africa’s National Treasury expects to receive 4 billion rand ($223.2 million) from crude oil sales in the fiscal year ending March 2026, though current price levels suggest this target may not be achieved without a significant oil price rally.
The country’s current strategic crude reserves total approximately 7.7 million barrels. Since 2022, 2 million barrels have been sold to local petrochemical firm Sasol, with another 280,000 barrels sold to the local unit of France’s TotalEnergies.
Source: reuters.com