SINGAPORE: South Sudan exports of Dar Blend crude will hit 7 million barrels in August, up 40 percent from the previous month, as the country ramps up output, trade sources said on Tuesday.
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 Corp International (CNPCI), the sources said.
CNPCI offered 1 million barrels of Dar Blend for Aug. 1-5 loading in a tender that closed on Monday, with bids valid until the end of Tuesday.
Dar Blend exports for June and July were at 2.2 million barrels and 5 million barrels, respectively, the sources said. (Reuters)
