South Sudan Dar Blend crude August exports to hit seven million barrels

SINGAPORE – South Sudan exports of Dar Blend crude will hit seven million barrels in August, up 40 per cent from the previous month, as the country ramps up output, trade sources said yesterday.

SINGAPORE – South Sudan exports of Dar Blend crude will hit seven million barrels in August, up 40 per cent from the previous month, as the country ramps up output, trade sources said yesterday.

South Sudan resumed Dar Blend exports in June after the country and neighbour Sudan resolved a dispute over pipeline fees that began in January 2012. Landlocked South Sudan sends its oil via the pipeline for export from Sudan.

The jump in Dar Blend supply will continue to depress spot differentials of competing grades from the Asia-Pacific and West Africa, and improve margins for refiners able to run such oils.

The South Sudan government issued a tender last week to sell 3.2 million barrels - or four cargoes - of the heavy sweet crude for August, sources said, with Chinese refiners and trading companies Arcadia and Trafigura the likely takers.

The South Sudan tender sale was likely done at about $10 a barrel below dated Brent, steady from July, one source said.

The rest of the August barrels will be marketed by China National Petroleum Corporation International, the sources said.

Dar Blend exports for June and July were at 2.2 million barrels and five million barrels, respectively, the sources said.

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