Sudan secures sale of Dar Blend crude at steep discount

August 19, 2008 (TOKYO) – Sudan has managed to sell 600,000 barrels of Dar Blend crude for October at a lower offer than previously anticipated.

The state oil company Sudapet was forced to re-tender its sale of the September Nile Blend in late July after receiving low bids, traders said at the time.

However it later awarded that second tender at a differential stronger than bids made in the first tender at discounts of $28.00 and $28.70 a barrel to Glencore and Middle Eastern trader Fal Oil compared with $32.00 for August Dar Blend.

The discrepancy between the prices of mainstream crude oil that reached 3 digit figures and Dar Blend crude is due to the quality of the latter.

Dar Blend crude is heavily discounted because of its highly acidic content, while US sanctions against the purchase of Sudanese goods also keeps many companies away.

But the heavy sweet, acidic Dar Blend crude can be used for fuel oil blending.

(ST)