Petroleum oils drive N$8.5bn import bill
Outlook looks bleak
Major oil powers led by Saudi Arabia announced a surprise production cut of more than one million barrels per day from May.
Namibia’s N$8.5 billion import bill in February 2023 was mainly driven by petroleum oils, mostly sourced from India, the United Arab Emirates and Italy, according to the Namibia Statistics Agency (NSA).Similarly, in January, petroleum oils was the main driver of the domestic N$10 billion import bill. Petroleum oils in January were mainly sourced from Saudi Arabia, Malaysia and Singapore.
Fin24 reported that major oil powers led by Saudi Arabia announced a surprise production cut of more than one million barrels per day on Sunday, calling it a "precautionary" move aimed at stabilising the market.
The reductions, on top of a Russian decision to extend a cut of 500 000 barrels per day, and despite US calls to increase production, risk stoking inflation and pressure to raise interest rates.
Cuts by Saudi Arabia, Iraq, UAE, Kuwait, Algeria and Oman from May to the end of the year will top one million barrels per day - the biggest reduction since the OPEC cartel slashed two million barrels per day in October.
Russia, a leading member of the OPEC cartel, said it was also extending an existing cut of 500 000 bpd to the end of this year, describing it as "a responsible and preventive action".
The cuts follow a drop in oil prices triggered by jitters over the banking sector, following the collapse of US lender SVB and UBS's hurried buy-out of troubled rival Credit Suisse, UAE-based oil expert Ibrahim al-Ghitani told AFP.
Prices
Brent crude oil prices, trading just below US$80 a barrel late last week, should bounce to above US$80 as a result of the reductions, he said, calling prices below US$80 "unacceptable" for OPEC .
Meanwhile, the ministry of mines and energy on Monday announced that fuel prices will remain unchanged for the month of April.
Petrol in Walvis Bay remains at N$19.78 per litre, and diesel remains at N$20.65 per litre.
In South Africa, the diesel price is cut by over 73 cents (c) a litre, with a marginal 1c decrease in 93 petrol, and a 2c increase in 95 in Gauteng.
Looking at exports, N$8.1 billion was earned in February 2023, from N$7.8 billion recorded in January 2023, an increase of 3.1%.
Diamonds were Namibia’s largest export commodity during February 2023, accounting for 24.7% of total exports mostly destined to Botswana, Belgium and the United Arab Emirates.
Fish and uranium came second and third in the list accounting for 14.7% and 12.7% of total exports, respectively. Fish was destined to Spain, Zambia and Mozambique, while uranium was wholly destined to China, NSA [email protected]