CNPC, Sinopec to boost purchases of oil products

China National Petroleum Corp. (CNPC) and China Petrochemical Corp. (Sinopec), China’s largest oil and gas producers will be buying additional oil products from other refineries, to meet the country’s increasing demand. Purchases of oil products from other refineries are expected to reach more than 60 million metric tons.  The two companies are finding it increasingly difficult to find oil products overseas.  In 2010, CNPC bought approximately 40 million tons of while Sinopec purchased 20 million tons, in an effort to keep the supply at their service stations.  As the shortage of products increase, there has been an inversion of wholesale and retail prices, all lessening profits for companies like CNPC and Sinopec.  Both companies have a mandate to provide oil products, in spite of any losses they may incur. (May 4, 2011)