Difficulties obtaining letters of credit (L/Cs) has caused delays to current shipments of fuel into Egypt.

Now it looks as though the L/C shortage will deter suppliers from bidding to sell oil in Egypt's next big import tender.

Vessels waiting

According to traders based in Egypt, oil-laden vessels are queuing up outside the country's ports unable to unload because L/Cs cannot be found to release their cargoes.

An official at Egyptian General Petroleum Corp (EGPC) has denied the L/C shortage.

Suppliers deterred

Trade sources however reckon shipments are being delayed for up two weeks as buyers persuade banks to provide the required financing facilities.

They say that some suppliers have been put off by the L/C shortage and, for that reason, may decide not to offer oil in a forthcoming US$1 billion import tender.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.