South Sudan’s oil revenues have turned negative this year as sales prices for its heavy crude exports failed to cover $25/B pipeline transit fees. Renegotiations are ongoing. But peace in South Sudan's cival war remains elusive.

The possibility that South Sudan might shut down its oil production looks likely to be averted after Juba and Khartoum entered talks to re-negotiate the price that Sudan charges the south to use its infrastructure for oil exports. In the early weeks of the...