SAUDIS DROP CONDITION FOR OIL SALE TO BRAZIL
Saudi Arabia has dropped its
condition that Brazil secure international bank guarantees
before Saudia Arabia would ship it oil, state-oil company
Petrobras said in a statement.
    Petrobras said the Saudis will accept Banco do Brasil
credit guarantees.
    Petrobras cancelled a 40 mln dlr crude oil purchase from
the Saudis yesterday after they refused to accept a letter of
credit from the official Bank of Brazil. The Saudis had
demanded that Brazil get credit guarantees from leading
international banks.
    Petrobras said the Saudis had been advised that if they did
not change their mind by Monday, Petrobras would negotiate the
purchase of oil with other producers.
    The Petrobras statement said the shipment of 2.2 mln
barrels will be made by the Saudis on March 24 as scheduled.
    The shipment was part of a contract signed in February for
the Saudis to supply Brazil with 125,000 barrels per day until
June.
 REUTER
