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In today's blog we take a look at South Africa's crude oil imports for 2017 from three of South Africa's biggest suppliers of crude oil. We will take a look at the average value of crude oil from each of these countries as well as the average price paid.
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Saudi Arabia, Nigeria and Angola
The bar chart below shows the average monthly value of crude imported into South Africa from Saudi Arabia, Nigeria and Angola, as well as the average price paid per kilogram from each of these countries.
As the bar chart shows the average Rand value of crude from Saudi Arabia , which amounts to around R3.3billion is roughly the same amount as Angola and Nigeria combined. Adding these three countries average monthly crude oil imports together amounts to roughly R6.7billion worth of crude oil being imported into South Africa on a monthly basis from just these three countries. Thats equivalent to R80.4billion of crude from these three countries in 2017. Its no real surprise then that crude oil is one of South Africa's biggest imports.
While the value of crude oil imports among these three countries are vastly different, the average Rand per kilogram paid for crude oil from these countries do not differ substantially. Telling though is the fact that the average Rand price per kilo of crude from Saudi Arabia is slightly cheaper than that of of the other two. Guess economies of scale or buying in bulk is applicable here, where the more you buy the cheaper it gets per unit (in this case kilograms).
The line graph below shows the average price per kilogram per month from the above mentioned three countries.
While the value of crude oil imports among these three countries are vastly different, the average Rand per kilogram paid for crude oil from these countries do not differ substantially. Telling though is the fact that the average Rand price per kilo of crude from Saudi Arabia is slightly cheaper than that of of the other two. Guess economies of scale or buying in bulk is applicable here, where the more you buy the cheaper it gets per unit (in this case kilograms).
The line graph below shows the average price per kilogram per month from the above mentioned three countries.
Sadly for South African consumers the price of crude per kilogram has been on the increase recently and this is filtering through into higher fuel prices which will eventually have an impact on currently low levels of inflation, limiting the scope and room for future interest rate cuts. In coming days we will update the graphic to include the first three months of 2018 and check if average prices of crude has continued in its upwards trajectory as shown in the line graph above.
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