HONG KONG, April 7 (Reuters) - Asia's top oil refiner, Sinopec, rose more than 1 percent on Thursday after China announced it would raise retail gasoline and diesel prices to record highs, easing the burden of state refiners under pressure from soaring oil prices.
The fuel price rise was expected and aims to ensure refiners produce enough to meet the seasonal rise in demand for diesel from farmers planting crops. But it falls well short of a 20 percent rise in Brent crude since the last government-mandated pump price rise in February.
Analysts said the rise would only offer temporary relief to refiners such as Sinopec Corp and PetroChina with the move not sufficient to restore positive refining margins for the sector.
Sinopec was up 0.9 percent by 0215 GMT, outperforming its peers.
(Reporting by Farah Master; Editing by Jacqueline Wong) Keywords: SINOPEC SHARES (farah.master@thomsonreuters.com)(+852 28431631 , +852 9631 8262)(Reuters Messaging: farah.master.thomsonreuters@thomsonreuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The fuel price rise was expected and aims to ensure refiners produce enough to meet the seasonal rise in demand for diesel from farmers planting crops. But it falls well short of a 20 percent rise in Brent crude since the last government-mandated pump price rise in February.
Analysts said the rise would only offer temporary relief to refiners such as Sinopec Corp and PetroChina with the move not sufficient to restore positive refining margins for the sector.
Sinopec was up 0.9 percent by 0215 GMT, outperforming its peers.
(Reporting by Farah Master; Editing by Jacqueline Wong) Keywords: SINOPEC SHARES (farah.master@thomsonreuters.com)(+852 28431631 , +852 9631 8262)(Reuters Messaging: farah.master.thomsonreuters@thomsonreuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2011 AFX News
