China International United Petroleum & Chemical Corp. (386), the nation’s biggest oil trader, said it will extend a halt on imports of diesel for a fifth month because of domestic production is sufficient to meet demand.
China International, known as Unipec, doesn’t plan to make any overseas purchases for August delivery as an electricity shortage that prompted some factories to turn to diesel-powered generators eases, according to a company official who declined to be identified because the information is confidential. The company also doesn’t plan any export of the fuel next month.
The government suspended diesel exports in May to bolster domestic supplies before the peak demand period of July to September. The nation’s summer power shortage this year may be its worst, according to the State Grid Corp of China.
Electricity supplies were rationed in 12 Chinese provinces in mid July, fewer than a month earlier, after rainfall boosted hydropower generation and lowered temperatures, the National Development and Reform Commission, the country’s top economic planner, said July 29. Daily hydropower output rose 34 percent to 2.2 billion kilowatt-hours in June from May, the commission said.
Unipec is the trading division of China Petroleum & Chemical Corp., or Sinopec, the nation’s largest oil refiner.
Diesel stockpiles declined 1 percent to 10.07 million tons at the end of June from a month earlier, according to Bloomberg calculations based on data released by the official Xinhua News Agency.
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