Sudan sells Dec oil crude sharply weaker

November 10 (SINGAPORE) — Sudan awarded a monthly tender for December Dar Blend crude at a discount of around $34.30 a barrel to dated Brent, the lowest price since Sudan started selling the grade in tenders in April, Reuters reported on Monday.

Chinese trader UNIPEC would buy the whole 1.6 million barrels of the heavy sweet grade offered in the tender, the trader added.

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

The discount sharply widened from last month when November Dar Blend traded at around minus $26.50, and comes as the fuel oil crack has fallen from four-year highs to stand at around a $14.30 discount to Dubai swaps on Monday.

Malaysia’s state oil company Petronas cancelled last week a tender to sell 600,000 barrels of heavy sweet Dar Blend crude because of low bids, traders said at the time.

(ST)