Africa-Press – South-Africa. Africa Melane speaks to Timothy Walker, Senior researcher on maritime security at the ISS about the growing energy risks linked to the conflict in the Middle East and what it could mean for South Africa’s fuel supply.
Rising tensions in the Middle East are once again shining a spotlight on how vulnerable South Africa is to disruptions in global oil supply.
Much of the concern centres on the Strait of Hormuz, a narrow shipping channel between the Persian Gulf and the Gulf of Oman that is responsible for transporting roughly a fifth of the world’s oil supply. The conflict has already disrupted traffic through the strait, with the effects rippling across global energy markets, including in South Africa.
This follows reports that Saudi Aramco is offering oil buyers an alternative export route through the Red Sea port of Yanbu as disruptions threaten the Strait of Hormuz.
This route allows oil to bypass the Strait of Hormuz entirely by transporting crude through pipelines across Saudi Arabia before loading it onto ships on the Red Sea.
Diversifying oil suppliers might sound like an obvious solution, but in reality it is difficult to do quickly.
Oil supply chains are complex and often tied to long-term contracts, specialised refinery configurations and shipping logistics.
Speaking to Africa Melane on The Money Show, Timothy Walker, senior researcher on maritime security at the Institute for Security Studies says while South Africa can source fuel from different regions, the country is still dependent on the same global shipping lanes and oil markets.
“The two main problems I think for South Africa involve competition with other importers who are prepared to pay a premium which we can’t reach.”
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