More Sudanese oil available for marine fuel blending as China demand eases
South Sudanese Dar Blend crude oil is returning to the Singapore and Malaysia marine fuel blending markets as Chinese demand for the heavy-sweet crude has decreased. This shift has put downward pressure on low-sulphur fuel oil prices in the region.
Why it matters
Fluctuations in crude oil supply chains directly impact global shipping costs and marine fuel market pricing.
SINGAPORE, Aug 27 (Reuters) – More barrels of South Sudan’s Dar Blend crude oil returned to the marine fuel blending pool in Singapore and Malaysia this month as demand from China’s refining sector eased, according to market sources and shipping data.
The rise in Sudanese oil imports added to other arbitrage supply, putting pressure on Singapore’s low-sulphur fuel oil market towards the end of the month.
Earlier this year, Dar Blend was diverted away from the conventional marine fuel blending outlets to some of China’s refineries, market sources said, after the U.S.-Iran war disrupted heavy crude supply from the Middle East.
About 1.7 million barrels of Dar Blend arrived in Singapore and Malaysia in August, up for a third consecutive month, Kpler data showed.
China received no volume in August, the data showed, after importing Dar Blend every month between March and July.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in