It is reported that Sinopec's total crude oil processing volume this month has decreased by more than 10% compared to the original plan

According to foreign media reports, due to the ongoing expansion of the Middle East war and transportation difficulties in the Strait of Hormuz leading to disruptions in crude oil supply, Sinopec (00386.HK) will reduce its total crude processing volume this month by more than 10% compared to the original plan, as more than half of the crude oil for the company's refineries comes from the Middle East.

It is reported that Sinopec's refineries process about 5.2 million barrels of crude oil daily, accounting for approximately one-third of China's total crude oil production. It is estimated that the refining volume in March may decrease by 600,000 to 700,000 barrels, and this production cut does not include the production losses caused by ongoing planned maintenance.

Sinopec's stock price fell today (16th) against the market trend, currently reported at HKD 4.79, down 1.03%, with a trading volume of 70.4342 million shares, involving HKD 339 million.

According to FGE analyst Mia Geng, the processing volume of Chinese refineries may start to decrease by 1.5 million barrels per day to 13.5 million barrels per day from this week, and it is expected that China will begin to release 1 million barrels of inventory daily in the next four to six weeks. Some refineries may be allowed to use commercial inventories to avoid significant production cuts