Sudan Crude Returns to Marine Fuel Blending
More South Sudanese Dar Blend crude returned to marine fuel blending pools in Singapore and Malaysia this month as Chinese refining demand eased. The influx of heavy-sweet crude pressured low-sulphur fuel oil markets toward the end of August.
South Sudan redirected 1.7 million barrels of Dar Blend crude to Singapore and Malaysia in August as demand from China eased. The influx of heavy-sweet crude added to arbitrage supply, pressuring regional low-sulphur fuel oil markets. Spot differentials for Singapore 0.5% low-sulphur fuel oil fell to a one-month low.
The shift follows months of Chinese refiners absorbing the crude after Middle East supply disruptions. Kpler senior oil research manager Emril Jamil said that incremental availability allowed buyers to ease purchases of Dar Blend.
