Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

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

Stock Markets Apr 27, 2022 11:01PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© 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 (NYSE:SHI) 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.

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)

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

Related Articles

Battle for Spirit Airlines enters final stretch
Battle for Spirit Airlines enters final stretch By Reuters - Jun 28, 2022

(Reuters) -Spirit Airlines Inc on Tuesday rejected JetBlue Airways (NASDAQ:JBLU) Corp's latest sweetened offer and recommended that shareholders vote in favor of a merger with...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email