The tender was issued last week, traders said, as Syria desperately needs fuels to keep the country on its feet.
Although the European Union 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.
“I cannot see the tender being awarded. It will be very, very tough. The same EU sanctions that are preventing crude sales will affect this tender. Shipping will be an issue as well,” a trader who used to deal with Syrian oil said.
“Nobody can participate, I guess,” said a second trader, who used to deal with Syrian products before social unrest in Syria.
Syria’s oil exports have come to a standstill in September due to sanctions and this may force a cut in production, weakening President Bashar Assad’s ability to generate cash amid a bloody crackdown on protesters.
Both Syrian light and heavier Souedie crude are on offer in exchange for the oil products required to run Syria’s oil-fired power plants, keep its economy afloat and prevent widespread disruption to civilian life.
Syria needs to import gasoline, gasoil and diesel because the combined 240,000 barrel per day capacity of its two state-run refineries is unable to meet demand.
A tender has been issued for two cargoes of gasoil for delivery in October.
