Sudan offers 1.6 mln of Dar Blend crude for December

October 31, 2008 (SINGAPORE) — Sudan has offered via tender 1.6 million barrels of Dar Blend crude for loading in December, down from 2 million barrels for November, traders said on Friday.

The tender closes on Nov. 5 with bids to remain valid until Nov.9.

Malaysia’s state oil company, Petronas, is also closing a tender to sell 600,000 barrels of Dar Blend crude, for end-November loading, later on Friday.

Sudan sold 2 million barrels of Dar Blend crude for November loading at discounts of between $23.00 and $26.50 a barrel to Dated Brent, but the grade may have weakened since as the fuel oil crack has fallen to discounts to Dubai swaps deeper than $10.00 a barrel on rising supplies from the West and poor Chinese demand.

The grade’s high acidic content makes it unattractive to most Asian refiners, while U.S. sanctions against the purchase of Sudanese goods also keep many companies away.

(ST)