Gasoil inventories of sales branches under PetroChina and Sinopec totaled 2.84-mil mt in 13 major grain-producing areas as of Jul 10, sharply up 26.4% from a year earlier, according to latest data released by the National Development & Reform Commission.
The inventories of both gasoil and gasoline amounted to 4.88-mil mt, swelling 20.6% year-on-year, the data showed.
The end of summer harvesting season was the main reason for the hike in oil product inventories, especially the surge of gasoil inventories, some market sources denoted.
Gasoil sales of both of the two oil giants were slack in Shandong and nearby Anhui and Henan province as Shandong independent refineries kept reducing prices on hefty inventories, the sources furthered.
Gasoil inventories may go up further in the near term in the dull consumption season, while gasoline stocks may drop on robust demand and supply cut caused by extensive maintenance, industrial sources predicted.
The 13 major grain-producing areas include Hebei, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Jiangsu, Anhui, Jiangxi, Shandong, Henan, Hubei, Hunan and Sichuan.
