China Sinopec says 2007 oil output up 2.27% year over year

HONG KONG, Jan 21 (Reuters) – Top Asian refiner Sinopec Corp said on Monday it had pumped 2.27 percent more oil in 2007 and refined 6.33 percent more crude, despite an expected loss at its refining arm in the second half of the year.

That beat its target of 2.1 percent growth in oil production but fell short of the goal of increasing refinery throughput by 6.6 percent.


Analysts say Sinopec, which had struggled with state-mandated caps on gasoline and diesel prices that have squeezed margins, may suffer from a worse fourth quarter as crude oil prices CLc1 jumped above $90 a barrel.

Chinese Premier Wen Jiabao said this month that there should be no immediate increase in oil product prices because China is facing its worst consumer inflation rate in 11 years and will temporarily intervene in the market to stabilise prices for basic necessities.

Beijing raised domestic fuel prices in November for the first time in 17 months after shortages of gasoline and diesel triggered rationing in hard-hit areas.

But experts said the 9-10 percent rise in gasoline and diesel prices would slow but not stop losses for refining units.

Reuters