Syria is seeking to side-step sanctions that are hampering business with foreign firms by bartering crude oil in return for the fuel it desperately needs to keep the country on its feet, traders said on Friday. Although the EU has stopped short of banning the sale of fuel to Syria for humanitarian reasons, companies are refusing to participate in tenders because it has become near-impossible to deliver and receive payment for fuel through international banks.
Both Syrian light and heavier Souedie crude are on offer in exchange for the oil products required to run its oil-fired power plants, keep its economy afloat and prevent widespread disruption to civilian life. One crude oil trader said he refused to negotiate, adding that "nobody is going to lift crude".
Syria needs to import gasoline, gasoil and diesel because the combined 240,000 barrel per day combined capacity of its two state-run refineries is unable to meet demand. A tender has been issued for two cargoes of gasoil for delivery next month, but traders say they are unlikely to find a seller willing to undertake the risk. Gasoline suppliers have walked away as well. "We are no longer supplying, it is very difficult. They definitely want to buy, if they can find anyone to sell," said a products trader. "I don't think there are any buyers, ship owners mostly can't touch it," said another products trader.