South Africa plans to hold off selling more crude oil from its strategic reserves until global oil prices reach around $100 per barrel, a senior energy official told Reuters.
The country has been considering selling crude since 2022 to recoup revenue lost from a temporary fuel levy cut designed to ease consumer costs. At that time, Brent crude averaged $99 a barrel.
However, global oil prices have recently fallen due to concerns that U.S. President Donald Trump’s trade war could push economies into recession. On Wednesday, Brent was trading at about $66 per barrel.
“The oil price is too low right now. If we sell today, we risk depleting our reserves,” said Godfrey Moagi, CEO of the state-owned South African National Petroleum Company. “We are aiming to sell at around $100 per barrel.”
The South African government is expecting to raise 4 billion rand ($223.2 million) from further sales of crude oil in the fiscal year ending in March 2026. But Moagi’s statement suggests the government may not reach that target unless prices rise.
Since the levy cut, South Africa has sold 2 million barrels of oil to petrochemical firm Sasol and 280,000 barrels to TotalEnergies’ local unit. The country’s current strategic reserves are estimated at 7.7 million barrels.