Why is Sinopec increasing oil imports from Brazil and Africa, and what specific alternative supply routes is it pursuing?

Sinopec is increasing oil imports from Brazil, Africa, and other non-Gulf sources to mitigate supply disruptions caused by the Middle East conflict. Specifically, the company is pursuing alternative routes including crude oil shipments from Saudi Arabia’s Red Sea port of Yanbu and UAE oil exports piped to loading points outside the Gulf, as stated by Chairman Hou Qijun at the earnings briefing in Hong Kong.

What are Sinopec’s current inventory levels for crude oil and refined fuel, and how is it managing refinery throughput amid declining domestic demand?

Sinopec holds crude oil stocks sufficient for 20 days of processing and refined fuel stocks for 15 days of sales, according to President Wan Tao. Despite a 17% quarterly drop in second-quarter refinery throughput and an 18% slump in domestic refined fuel sales, the company aims to maintain flat processing volumes in the second half, requiring an annual crude throughput of about 4.52 million barrels per day — down 10% from 2025 — while also acknowledging that China’s oil consumption may have peaked in 2024 and refined fuel use is expected to fall by 8% in 2025 after an 8% decline in the first half.

Sinopec to Boost Oil Imports from Outside the Gulf Amid Supply Disruptions

2026-08-05

Sinopec Steps Up Russian Oil Imports to Offset Middle East Supply Cuts, Traders Say

2026-08-23

Sinopec First-Half Profit Rises 12% After Surge in Energy Prices

2026-08-23

Sinopec's Half-Year Profit Grew 19.3% Despite Iran War, Falling Demand

2026-08-24

Sinopec to Boost Oil Imports from Outside the Gulf Amid Supply Disruptions

2026-08-24

Middle East Conflict Reshapes Supply-Demand; Sinopec H1 Net Profit Surges Nearly 20%

Sinopec to Boost Oil Imports from Outside the Gulf Amid Supply Disruptions

FAQ