Sinopec: sufficient oil supply for South China

In response to recent media reports on oil supply shortage in South China, Sinopec, China's oil refiner giant, denied the concerns of media on Aug. 1.

There is no oil supply shortage in South China, including Guangdong Province. "Our own filling stations have enough oil supply for consumers. We do not see an oil products shortage at all," Sinopec spokesman Huang Wensheng said yesterday.

Sources from Guangdong Oil and Gas Association confirmed that in order to guarantee oil supply to its own outlets, Sinopec has stopped selling oil products to other companies and private filling stations in the province.

Yao Daming, an oil analyst with the association, said State-owned giants like Sinopec and PetroChina are able to guarantee oil supply.

However, Yao added that when global oil prices surge, there is a tendency for local dealers to store oil products and await a price hike in the local market.

"Some oil dealers are waiting for a price increase by storing more and selling less. Their action, in return, creates the impression that oil supply seems tight," Yao said.

Statistics from Guangdong Oil and Gas Association show that the wholesale price for some oil products has increased by 5% recently.