Sinopec<600028><386><SNP>, Asia's largest oil refiner, will trim crude processing by 10% in November due to lower fuel demand amid economic slowdown nationwide, sources reported, citing the company's officials.

Sinopec, which supplies more than 50% of fuel in China, will process around 15 million tons a month, or 3.65 million barrels a day, from November, according to the sources. The state-owned refinery does not rule out the possibility to launch further reduction.

Sinopec is looking into the market, said the officials, adding that further cut is likely to be necessary if demand worsens. The officials also noted that Sinopec will operate its Hainan refinery at 70% to 80% of the designed capacity this month due to the high fuel inventory,

China's crude processing volume, including those at Sinopec's rival PetroChina<601857><857><PTR>, the country's top oil producer, and other privately-owned plants, hit a record 30.3 million tons in July this year and declined to 29.8 million tons in October, sources reported.

A-shares of Sinopec surged 5.38% to RMB 8.23 on Monday, while its H-shares fell 0.66% to close at HK$4.55.

(China Knowledge, Nov 18, 2008)