Sinopec refinery back to break-even point

With international oil prices returning to 60 of billions of dollars, Sinopec's refining business is once again at the bottom of a break-even point, and a scene of waiting and calling for a policy of price adjustment has come back. International crude oil prices have been rising, from the March 25 increase in oil prices began, the international crude oil prices have rebounded from the then nearly 54 U.S. dollars to more than 60 U.S. dollars, or more than 10%.　　If the March 25 price adjustment, the domestic oil prices and crude oil prices have been basically in line with oil refining can maintain a basic reasonable gross margin, so now, the price of refined oil is also significantly lower.　　According to the National Development and Reform Commission, "oil price management measures (trial)", oil price changes in the range of 22 consecutive working days more than 4%, will consider the adjustment of oil prices.　　Analysts pointed out that Sinopec's oil refining has not yet plunged into a loss, but to the break-even point. Sinopec's crude oil procurement has a 6-8-week shipping period, so the crude oil being processed is still priced at the beginning of April. Crude oil fell to within $30 trillion in the first quarter of this year, while crude oil imports surged during the oil rally in 3 April, and imports increased by 13.55% in April, even over a year earlier. But compared with the "oil shortage" of the same period last year, Sinopec's refinery was running at full capacity and even overloaded, with a refinery operating rate of around 90% per cent this year.　　This shows that Sinopec in the low oil prices increased the amount of crude oil procurement, reducing the cost of refining.　　At the same time, several times this year, the price adjustment has been relatively timely, the refining sector has maintained a good profit margin, a period of time can even have 7-8 of dollars in gross margin, to achieve the best level of history, which in the past is unthinkable, Sinopec has profited handsomely in the first half. On the demand side, Sinopec believes downstream demand is good and the situation continues to improve. But the sales figures, which have been growing for months in a row, remain dubious in the eyes of many in the industry, as it is possible that a significant portion of the oil sold is in circulation and retail growth is limited.　　Because of the incredible storage capacity of middlemen, last year two large companies overloaded production, and the market still appeared "oil shortage."　　Industry insiders said that at present Sinopec's refining has once again reached the break-even, but not to the situation of direct losses, so the government in the time to raise prices still have some room, will make the price adjustment dragged for so long. The upward trend in oil prices this year is expected, but the pace is so rapid and unexpected, after many analysts believe that the oil price of 60 dollars to wait until the second half. Therefore, some people in the industry are worried about whether there will be another deep fall after the oil price has soared.　　But this is not a bad thing for Sinopec, the policy price adjustment is always sluggish, refining the margin is guaranteed. 28th this month will reach the "method" announced the price adjustment conditions, Sinopec can timely "overcome" will be seen.