PetroChina Sinopec to Cut Gasoline Export Again

PetroChina and Sinopec, China's two biggest oil companies, may continue to cut gasoline exports in September following a huge reduction in August, the China Securities Journal reported on Friday.

The two oil giants may even halt gasoline exports next month, the newspaper cited an anonymous market source as saying.

The two firms took the action in response to the call of the National Development and Reform Commission (NDRC), China's top economic planning agency, made early this month to strictly control refined oil exports and maintain price stability.

The combined refined oil exports of the two companies fell below 100,000 tons in August, but the cuts would have little impact on their profits, considering their monthly output of almost 4 million tons, the newspaper quoted an unnamed international oil dealer and domestic securities analyst as saying.

International oil prices have crept upward since June, at one stage breaking the 78 dollars a barrel mark, according to the NDRC.

The high prices have strained domestic supplies as many small local refineries suspended production to avoid losses and China also relied nearly half of its oil consumption on imports.