Sources say that Beijing has rejected Sinopec's request for tapping commercial reserves

Two sources confirmed this week that China rejected a request by Sinopec, a major refinery company in China, to 'access 13,000,000 metric tons (95,000,000 barrels) of national commercial reserves to 'offset an expected supply gap due to the U.S./Israeli war against Iran which threatens Middle East Exports.

According to industry estimates, Sinopec is the world's largest refiner in terms of?capacity and imports roughly?4million barrels of crude oil per day from the Middle East.

Sinopec's volume of crude oil is equivalent to 19 days?of processing or 40 days?of imports, including regular shipments coming from Saudi Arabia and Kuwait as part of annual supply agreements.

Beijing has also informed refiners of the fact that the oil in China's strategic reserve, the emergency stockpile built before it expanded its holdings to include commercial reserves, is not available for release at this time. This was confirmed by two sources and others.

The National Food and Strategic Reserves Administration of China declined to comment, citing confidential information.

Sinopec has declined to comment.

Vortexa estimates that China holds 900 million barrels of strategic oil, or 78 days worth of imports. Reporting by the energy team, editing by Pooja Deai

(source: Reuters)