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Pretoria - South Africa is looking forward to resuming trade with Iran, including oil imports, once sanctions are lifted following a nuclear deal between Tehran and six majors powers, the foreign minister said on Wednesday.
Iran was once the biggest oil supplier to South Africa - which is Africa's second-biggest crude consumer, importing around 380 000 barrels per day (bpd) in total.
"Of course if sanctions are lifted that's a win-win situation and South Africa will also benefit from that," Foreign Minister Maite Nkoana-Mashabane said in response to a question about resuming oil imports from Iran.
Nkoana-Mashabane said South Africa had never agreed with sanctions against Iran and that its oil refiners had suffered from a ban on crude exports from the Middle Eastern country.
South Africa bought around 68 000 bpd from Iran in May 2012, a month before it halted crude purchases as Western countries pressured Tehran over its nuclear programme. That was well down from peak purchases in 2011.
Historic nuclear deal
Iran and six major world powers reached a nuclear deal on Tuesday, capping more than a decade of negotiations with an agreement that could transform the Middle East, and which Israel called an "historic surrender".
Under the deal, sanctions imposed by the United States, European Union and United Nations would be lifted in return for Iran agreeing long-term curbs on a nuclear programme that the West has suspected was aimed at creating a nuclear bomb.
Oil price
For Iran, the end of sanctions could bring a rapid economic boom by lifting restrictions that have drastically cut its oil exports and hurt its imports.
The prospect of a deal has already helped push down global oil prices because of the possibility that Iranian supply could return to the market.
"Even with an historic deal, oil from Iran will take time to return, and will not be before next year, most likely the second half of 2016," Amrita Sen, chief oil analyst at London-based consultancy Energy Aspects, told Reuters. "But given how oversupplied the market is with Saudi output at record highs, the mere prospect of new oil will be bearish for sentiment."
Asia to lead purchases
Asian refiners are set to buy more crude oil from Iran once they receive word on when sanctions will be lifted, expecting Tehran to price its oil competitively as it tries to rebuild market share in an oversupplied market.
Iran has said its priority destination for selling its crude is Asia, not surprising since China, India, Japan and South Korea are its largest customers. The four have sometimes been the country's only crude customers since toughened sanctions were put in place in early 2012.
US benchmark West Texas Intermediate for August delivery rose nine cents to $53.13 and Brent crude for August climbed 12 cents to $58.63 a barrel in afternoon trade (US time).
Iran was once the biggest oil supplier to South Africa - which is Africa's second-biggest crude consumer, importing around 380 000 barrels per day (bpd) in total.
"Of course if sanctions are lifted that's a win-win situation and South Africa will also benefit from that," Foreign Minister Maite Nkoana-Mashabane said in response to a question about resuming oil imports from Iran.
Nkoana-Mashabane said South Africa had never agreed with sanctions against Iran and that its oil refiners had suffered from a ban on crude exports from the Middle Eastern country.
South Africa bought around 68 000 bpd from Iran in May 2012, a month before it halted crude purchases as Western countries pressured Tehran over its nuclear programme. That was well down from peak purchases in 2011.
Historic nuclear deal
Iran and six major world powers reached a nuclear deal on Tuesday, capping more than a decade of negotiations with an agreement that could transform the Middle East, and which Israel called an "historic surrender".
Under the deal, sanctions imposed by the United States, European Union and United Nations would be lifted in return for Iran agreeing long-term curbs on a nuclear programme that the West has suspected was aimed at creating a nuclear bomb.
Oil price
For Iran, the end of sanctions could bring a rapid economic boom by lifting restrictions that have drastically cut its oil exports and hurt its imports.
The prospect of a deal has already helped push down global oil prices because of the possibility that Iranian supply could return to the market.
"Even with an historic deal, oil from Iran will take time to return, and will not be before next year, most likely the second half of 2016," Amrita Sen, chief oil analyst at London-based consultancy Energy Aspects, told Reuters. "But given how oversupplied the market is with Saudi output at record highs, the mere prospect of new oil will be bearish for sentiment."
Asia to lead purchases
Asian refiners are set to buy more crude oil from Iran once they receive word on when sanctions will be lifted, expecting Tehran to price its oil competitively as it tries to rebuild market share in an oversupplied market.
Iran has said its priority destination for selling its crude is Asia, not surprising since China, India, Japan and South Korea are its largest customers. The four have sometimes been the country's only crude customers since toughened sanctions were put in place in early 2012.
US benchmark West Texas Intermediate for August delivery rose nine cents to $53.13 and Brent crude for August climbed 12 cents to $58.63 a barrel in afternoon trade (US time).
