RARE SHIPMENT OF OIL HEADS TO SA FOR GLENCORE’S REFINERY FOR THE FIRST TIME IN 2 YEARS

A SHIPMENT of US oil is headed to South Africa for the first time in two years and destined for a Glencore-owned refinery in Cape Town that has restarted operations after an explosion shuttered it in 2020, according to ship tracking data and a source. US oil exports this year hit a record 4.5 million barrels per day as competitive pricing for US grades and China’s reopening after Covid-19 have fuelled global demand. Tanker Sonangol Porto Amboim, carrying light sweet oil, left Corpus Christi, Texas, on May 16 for Saldanha Bay, according to ship tracking information. South Africa gets most of its oil from West and Central Africa as well as Saudi Arabia, according to data. But competitive pricing for US crude and changes to oil flows since Russia’s invasion of Ukraine have opened new markets. The last shipment of US oil went to South Africa in May 2021, US customs data showed.

The 850 000 barrel-cargo of West Texas Light was purchased by Swiss-commodities trader Glencore, a person familiar with the matter said. Glencore’s majority-owned Astron Energy restarted production at its

100 000-barrel-per-day Cape Town refinery nearly three years after a deadly explosion shuttered operations and killed two workers. Glencore declined to comment on the shipment. Astron confirmed that the refinery restarted as part of a phased process and was producing at its planned capacity. Astron, which has the secondlargest retail fuel network in southern Africa, receives its oil from tankers discharging in Saldanha Bay and transports the oil to the Cape Town refinery via pipeline, according to the refiner’s website. | Reuters