Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Sinopec expects China's oil demand to recover in Q2, positive growth in 2022

Published 2022-04-27, 10:54 p/m
Updated 2022-04-27, 11:01 p/m
© Reuters. FILE PHOTO: The company logo of China’s Sinopec Corp is displayed at a news conference in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip/

© Reuters. FILE PHOTO: The company logo of China’s Sinopec Corp is displayed at a news conference in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip/

BEIJING (Reuters) -China's Sinopec Corp expects demand for refined oil products to recover in the second quarter as COVID-19 outbreaks in the country are gradually controlled, and sees full year oil consumption reaching positive growth.

Asia's biggest oil refiner has cut its refining runs since the second half of March and is maintaining an "optimal" refinery operation ratio of around 85%, compared with 92.6% earlier in the year, Sinopec officials said at a briefing on Thursday.

Cities across China, including the financial hub of Shanghai, were put under lockdowns following a flare up of COVID-19 cases, leading to road freight clogs and port congestion.

"The anti-COVID measures have restrained consumption of refined oil products. But we expect oil demand to gradually resume in the second quarter with the pandemic outbreak under control," said Li Li, deputy head of Sinopec's operation management department.

"At this moment, we are confident about the 2022 fuel consumption in China...Even if the recovery in the second quarter is moderate, the full year growth will remain positive."

Sinopec also expects its total liquefied natural gas (LNG) imports to stay steady in 2022.

The firm incurred a loss of 1.6 billion yuan ($243.58 million) from its 4.8 million tonnes of LNG imports in the first quarter, 1.2 billion yuan more than a year earlier due to high import costs.

© Reuters. FILE PHOTO: The company logo of China’s Sinopec Corp is displayed at a news conference in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip/

Sinopec officials said the firm is reducing purchase of spot LNG cargos and will focus more on term-contracts in the coming months.

($1 = 6.5686 Chinese yuan renminbi)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.