In March 2011, China's implied oil demand increased 11% year over year to 9.16 million barrels per day, preliminary data from the government revealed.
During the first quarter, Sinopec produced 31.55 million tons of refined oil, up 6.2% year over year. Crude oil processing volume increased 7.4% year-on-year to 54.72 million tons in the same period. Heading into April 2011, Sinopec estimates to produce 10.54 million tons of refined oil, indicating a 410,000-ton increase from March, as parent group Sinopec seeks to continue production at full capacity.In order to expand its resources base, Sinopec is looking to tap the vast oil and gas reserves of Russia's East Siberia and to continue working in the Sakhalin-3 block. The company also has completed building its 12 million-barrel commercial crude oil storage facility in Maoming city, one month ahead of schedule. The $260 million facility is scheduled to become operational on April 20 and is designed to store Oman crude oil and Saudi Arabian light crude. The facility has the capacity to store roughly two days of China's crude imports. Besides, Sinopec is also building a 20 million-barrel crude reserve base in the coastal city Beihai, ready for use in September. Of the four analysts covering the stock, three rate it a buy while one rates it a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg have a consensus price taret of $119.50 for the next year, implying upside of 18.6%.