Sudan offers 2.6 mln barrels of March Nile Blend

January 22, 2010 (TOKYO) — Sudan has issued a tender to sell 2.6 million barrels of March-loading Nile Blend crude, traders said on Friday.

The tender for the heavy sweet crude closes on Tuesday 26, with bids valid until Thursday 28.

Sudanese state oil firm Sudapet, in a tender last month for February-loading Nile Blend, sold a 1 million-barrel cargo to European trader Arcadia and a 600,000-barrel cargo to Glencore at a discount of between $1.10 and $1.20 a barrel to Minas Indonesia Crude Price (ICP).

In another development, China National Petroleum Corp (CNPC) sold a cargo of Sudan’s Dar Blend crude via tender for February loading at stronger differentials.

CNPC sold the 1.0 million-barrel heavy sweet crude cargo to Chinaoil at a discount of between $8.00 and $8.50 a barrel to dated Brent.

The differentials were stronger than a discount of between $9.00 and $9.70 fetched for 2.6 million barrels of January Dar Blend sold by Sudapet.

The fuel oil crack spread rose to a discount of around $2.50 a barrel this week, up from a discount of $4.70 when the January cargoes were awarded, providing some support to fuel oil-rich heavy sweet crudes.

Dar Blend crude is heavily discounted because of its high acid content, making it unattractive to most Asian refiners. U.S. sanctions against the purchase of Sudanese goods also keep many buyers away.

(ST)