State-owned Sinopec’s oil product inventory is rising amid weak sales, and the company is now preparing for a rebound in domestic demand once the current wave of COVID-19 ends, executives said during the company’s Q1 results call April 28. The world’s top refiner, with about 6.1 million b/d primary capacity, was hit by high feedstock prices and weaker demand in March and April, resulting in high inventory costs which squeezed cash flow, the executives said. Huang Wensheng, vice president and secretary to the board of directors, said the company cut refinery utilization rates in March to 85% from over 90% in January and February as demand slowed in China amid the resurgence in COVID-19 cases.
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