Asia Crude-Sudan sells Dec Nile Blend stronger

October 19, 2007 (SINGAPORE) — Sudan has sold 2 million barrels of December Nile Blend crude via tender at sharply stronger differentials than a month ago, traders said on Friday.

Sudanese state oil firm Sudapet awarded two cargoes of 1 million barrels each to European trader Arcadia, one at a discount of between $3.50 and $3.85 to the Minas Indonesia Crude Price (ICP), and the other at a deeper discount of $4.28, two traders said.

That is stronger than November’s levels when the heavy sweet grade was heard to have traded at discounts deeper than $5 a barrel and came as a November cargo was said to be still unsold.

The stronger price follows trades for rival December Indonesian Duri crude at premiums of $3.50-4.00 a barrel to the Duri ICP this week, up from $2.10-3.00 premiums for November, a sign that demand for direct-burning crudes may pick up ahead of winter.

Direct-burning Nile Blend crude took a hit earlier this year, as expectations that demand for crude and fuel oil from Japanese utilities after Japan closed its largest nuclear plant in July failed to materialise.

(Reuters)