Sinopec operates 90% refinery capacity, sales rising

Shanghai, May 22 (Gasgoo.com) China's state oil giant Sinopec Corp has operated its refineries at 90% of capacity since April and it is currently exporting about 600,000 tons of fuel a month, Reuters reported.

But as international crude prices climbed above US$60 per barrel, the top Asian refiner's operations slipped back into the red as a result of government-set fuel prices, company chairman Su Shulin told reporters.

The company had also been exporting an average of 600,000 tons of refined fuels in recent months, including 300,000 tons of diesel, said Sinopec vice-president Zhang Jianhua.

Sinopec expects the government's tax incentives for oil product exports can be maintained into the third quarter, to help keep refineries operating at high rates.

Meanwhile, the company was focusing its acquisition strategy on South America and Africa for company acquisitions, assets purchases and risk exploration, Su said.