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Blog 2: 5 May 2016 (South Africa's crude oil imports investigated)
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In yesterday's blog (4 May 2016) we posted a blog on the cost per kilogram of crude oil imports in recent months, and the impact the stronger Rand in recent months had on the cost of importing crude oil. While that focussed on the recent crude oil price paid per kilogram, this blog post will provided a more detailed look into South Africa's crude oil imports. Where are we getting it from, how much are we importing and what are we paying for it.
The first graphic below shows the monthly number of kilograms of crude oil imported vs Rand value paid for crude oil imports. |
The graphic above shows the Rand value of crude oil imports per month vs the number of kilograms of crude oil imported each month. While there has been some up and down movement in the number of kilograms of crude oil imported into South Africa, demand does look pretty stable over time (the light blue line). While the price paid per kilogram (gray line) is far more volatile (considering the scale of its axis on the right). That is mainly due to the fact that the Rand price paid per kilogram is not only dependent on the dollar crude oil price but the Rand/Dollar exchange rate (both of which can be very volatile).
Demand each yearAs can be seen from the bar chart below demand dropped by almost 1.5billion barrels in 2011, when compared to 2010. And again by almost the same amount for 2015 when compared to 2014. Crude oil demand is indicative of economic performance, as GDP quarter on quarter annualised averaged 3.88% in 2010, compared to 2.98% in 2011. And 1.38% in 2014 compared to just 0.38% in 2015.
Highest average price per kilogram of crude oil was in 2014. With prices dropping substantially in 2015, and it being even lower so far in 2016 |
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Main Crude suppliersThe pie chart to the right shows South Africa's main suppliers of crude oil, based on the Rand value of crude imported since January 2010 to March 2016. Saudi Arabia supplying almost 37% of South Africa's total crude with our West African friends Nigeria being the second biggest supplier with 27% of South Africa's crude. Angola coming in in third place with just under 16%
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Entry points into SAThe main entry points for crude oil into South Africa is Durban (as most refining capacity is situated there).
With Cape Town coming in a distant second and Mosselbay hardly worth a mention as the two aforementioned points of entry accounts from almost 99% of all crude coming into South Africa |
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