Clashes in Sudan threaten oil supplies from South Sudan

18 April 20231 year ago babelfish

South Sudan's oil, which comes from a landlocked state, could be at risk as clashes between the army and a paramilitary group in Sudan continued for a third day on Monday, with the growing risk of turning into a actual civil war.
Sudan exports only crude oil produced in landlocked southern Sudan.
The Rapid Support Forces (RSF), a paramilitary group, took up arms against the Sudanese army in the capital Khartoum over the weekend, according to Al Jazeera. In a Facebook post on Monday morning, the army said a group of RSF fighters had surrendered to the country's armed forces. At least 97 civilians have been killed in three days of clashes, according to the Central Committee of Sudanese doctors, quoted by Bloomberg.

For oil markets, the fear is that the civil war could disrupt oil exports from South Sudan, which depends on Sudan proper to get its crude to market through a Red Sea oil terminal located at Port Sudan.

Tribal protests in eastern Sudan halted exports from South Sudan in 2021, so fears build on serious precedent.

Now oil markets are closely watching the power struggle between military and paramilitary forces, looking for signs that South Sudan's crude could be disrupted yet again. It is a power-sharing struggle between two powerful groups, both seeking control of strategic infrastructure, including the international airport and the public broadcaster. As the Red Sea port, which handles South Sudanese crude, is a strategic infrastructure, oil market watchers are watching developments cautiously. According to estimates, South Sudan has 3.5 billion barrels of oil fields. South Sudan and Sudan mainly export Nile and Dar blends to Asian markets from Port Sudan through the Bab el-Mandeb Strait. Although most of the oil belongs to South Sudan, the two countries together exported about 132,000 bpd of crude oil in 2021. Not a huge amount, but significant especially for the finances of very poor South Sudan

Thanks to our Telegram channel you can stay updated on the publication of new articles from Economic Scenarios.

⇒ Register now ⇐

The article Clashes in Sudan threaten oil supplies from South Sudan comes from Scenari Economics .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gli-scontri-in-sudan-mettono-in-pericolo-le-forniture-di-petrolio-dal-sud-sudan/ on Tue, 18 Apr 2023 10:00:26 +0000.