KHARTOUM, Aug 27 – Sudanese oil is returning to the marine fuel blending market in Singapore and Malaysia as weaker demand from China’s refining sector frees up more barrels for fuel producers.
More cargoes of South Sudan’s Dar Blend crude arrived in Singapore and Malaysia in August, adding to other available supplies and putting pressure on the low-sulphur fuel oil market towards the end of the month, according to market sources and shipping data.
Earlier this year, Dar Blend was redirected from its usual marine fuel blending markets to some Chinese refineries after the U.S.-Iran war disrupted supplies of heavy crude from the Middle East.
About 1.7 million barrels of Dar Blend arrived in Singapore and Malaysia in August, marking a third consecutive monthly increase, Kpler data showed. China, which imported the crude every month from March to July, received no Dar Blend cargoes in August.
“With incremental crude availability and choice, (China’s) demand for additional barrels of heavy-sweet crudes like Dar has eased,” said Emril Jamil, a senior oil research manager at commodities data firm Kpler.
Dar Blend is a heavy-sweet crude that can be used to produce or blend low-sulphur fuel oil containing a maximum of 0.5% sulphur, a fuel widely used by ships.
The crude is in demand because heavy-sweet oil suitable for producing marine fuel that meets emissions requirements is relatively limited.
Jamil said the return of more Dar Blend to the bunker fuel blending market had put pressure on low-sulphur fuel prices. However, limited supplies of cutters and other blendstocks used to adjust fuel viscosity and sulphur content could restrict further declines.
Spot differentials for Singapore 0.5% low-sulphur fuel oil fell to their lowest level of the month this week, according to Reuters.
Sudan has exported about 2.6 million barrels of Dar Blend per month so far this year, up from an average of 1.9 million barrels per month in 2025, Kpler data showed. Most of the crude is loaded at Bashair port on Sudan’s Red Sea coast.
BB Energy, BGN and PetroChina are among the companies lifting Dar Blend cargoes, according to market sources and shipping fixture data.
Dar Blend exports resumed in February 2025 after a nearly year-long halt caused by a pipeline rupture in 2024. Before the disruption, much of the crude was shipped to the United Arab Emirates for the Fujairah bunker hub, as well as Singapore and Malaysia.
