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NDRC not optimistic about Q2 fuel supply

By Qiang Xiaoji (chinadaily.com.cn)
Updated: 2011-05-30 15:49

The National Development and Reform Commission (NDRC), China's top economic planner, said Monday it was "not optimistic" about the domestic fuel supply in the second quarter due to the strong seasonal demand and electricity shortages in some regions, stcn.com reported Monday.

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The NDRC said although oil prices were raised on April 7, which released refiners' operational pressure, some oil enterprises are still in the red.

Though crude oil prices fell in May, which eased some refiners' costs, the NDRC is still mot optimistic about the nation's domestic supply, the report said.

According to statistics released by the NDRC, in the first four months of this year crude oil refining grew steadily and industrial output value and investment increased sharply. Refined oil consumption boomed and oil reserves kept decreasing, leading to a tight supply. Because the refined oil and crude oil price ratio is comparatively low, industry profits decreased sharply, the report said.