China to stock up on refined goods

China's stockpile of refined oil products is expected to touch 10 million tons by the end of 2011, industry insiders have said. The country will shore up the inventory of oil products between this year and the next, they said. The move is widely expected to stabilize the domestic petrochemical market that has been hit by the economic downturn.

"Under the upcoming stimulus plan for the petrochemical industry, China will establish 3 million tons of oil product reserves this year. That will increase to 6 million tons next year," an official familiar with the plan said, refusing to be named.

The fresh reserves plan is still awaiting government approval, he said. China's leading oil companies, PetroChina and Sinopec, would take the charge of the reserves build-up.