Sudan sells September Nile Blend at lower discount

July 28, 2009 (LONDON) – Sudan has managed to sell 1.6 million barrels Nile Blend crude for loading in September at a slightly stronger differentials than similar deals for July but weaker than June, traders told Reuters on Tuesday.

The prices were impacted by lower demand for the crude in Japan utility firms and power output has fallen, one trader said.

Sudan state oil firm Sudapet awarded a 1.0 million barrel-cargo of the Nile Blend to European trader Arcadia at a discount of $2.85 a barrels to Minas Indonesia Crude Price (ICP) and a 600,000-barrel cargo to trader Chinaoil at a discount of around $2.90, traders said.

Minas, the benchmark for heavy sweet crudes sold in Asia, such as Nile Blend, normally trades below light sweet Brent crude, except at times of acute power shortages in Japan.

Last week India’s Oil and Natural Gas Corp (ONGC), which has a stake in the Greater Nile project, where Nile Blend is produced, sold 600,000 barrels of the heavy sweet grade for September loading at a discount of around $3.50.

(ST)