Sinopec Slashes Refining Runs as Hormuz Disruption Squeezes Crude Supply

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Sinopec, China's largest oil refiner, has cut its refining run rates by 10% (approximately 500,000 barrels per day) due to crude supply disruptions caused by traffic congestion in the Strait of Hormuz. The reduction is compounded by additional output losses from scheduled maintenance operations. Sinopec processes around 5.2 million barrels per day, representing roughly one-third of China's total refined petroleum product output.

Sinopec, China’s biggest oil refiner, has reduced its run rates by 10%, Bloomberg reported today, citing unnamed sources, in response to the supply squeeze resulting from the traffic disruption in the Strait of Hormuz. The size of the cut is equal to about half a million barrels daily. There will also be additional output losses from maintenance operations, the sources said. The refining major accounts for about a third of China’s total refined petroleum product output, with an average processing rate of 5.2 million barrels daily, the…