China's biggest oil refiner Sinopec, is set to increase its term purchases of Oman crude
China's biggest oil refiner Sinopec, is set to increase its term purchases of Oman crude for 2007 by more than 20 percent from this year to at least 190,000 bpd.
The more than 190,000 bpd of Oman crude that Sinopec will secure from its trading arm Unipec and Chinese trader Sinochem makes up nearly 30 percent of total Oman crude production, traders close to the term negotiations told Reuters.
Not all the supplies will end up in Chinese refineries. Sinopec, which has been increasingly flexible in trading and procuring Oman, regularly resells some of the barrels on the spot market and takes additional spot cargoes to feed its refining system.
Some of the Oman crude contracted could also head to China?s strategic reserves.