The US is now SA's biggest oil supplier, what could the future hold?

The Money Show's Stephen Grootes takes a look at our oil import history with  Avhapfani Tshifularo, CEO of the Fuels Industry Association of SA.

Oil prices remain volatile as the situation in the Middle East unfolds following the truce between Israel and Iran.

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South Africa years ago switched to getting the bulk of its crude oil imports from the US rather than Saudi Arabia.

Fellow African countries Nigeria and Ghana have also become important suppliers.

Stephen Grootes discusses the situation with Avhapfani Tshifularo, CEO of the Fuels Industry Association of South Africa (FIASA).

Tshifularo points out that it is not only the world that has changed, but also the oil industry itself.

The US, for instance, with its upswing in shale gas production, is now able to exploit oil that it doesn't need, he says.

"If you look at 2014 (when our largest supplier was Saudi Arabia) you just need to consider two years prior to the time of sanctions on Iran, which at one stage had been one of the biggest su;pliers of oil to SA. Then you see the emergence of the US and countries like Ghana playing such a big role, and Angola going down. It is fascinating what has been happening."

Avhapfani Tshifularo, CEO - Fuels Industry Association of SA

He highlights the difference in the way the oil business works in the US and in Saudi Arabia.

"In Saudi the biggest player is the state-owned company and it's the biggest contributor to the fiscus...whereas in the US with its excess, this is oil in private hands so private suppliers are able to lean into prices that seem appealing, to our local buyers here."

Avhapfani Tshifularo, CEO - Fuels Industry Association of SA

Tshifularo strikes a warning note when it comes to the possibility of conflict flaring up again between Israel and Iran.

South Africa is a small player and the downside of this is that small players are easily discarded or ignored, he says.

"If things shift, this will refocus some of the people to the same markets that are supplying us with finished product like say India or the UAE. Countries scramble for product, and because we are a small consumer in the global picture can easily be displaced by other big people with deep pockets."

Avhapfani Tshifularo, CEO - Fuels Industry Association of SA

"We have seen this at the beginning of the conflict in Ukraine for instance, where it was so difficult for us to get product because others were suddenly interested in sourcing product from the same markets that we were sourcing from."

Avhapfani Tshifularo, CEO - Fuels Industry Association of SA

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