CHINA Petroleum & Chemical Corp, Asia's largest oil refiner, said it will reduce production of some petrochemicals to increase fuel supplies as the nation recovers from its deadliest earthquake in 32 years.

Sinopec, as Beijing-based China Petroleum is known, will reduce ethylene output by 65,000 metric tons in June and this will allow it to boost production of fuels by 200,000 tons, parent China Petrochemical Corp said in its online newsletter Sinopecnews yesterday.

China has ordered oil producers to ensure supplies after the nation's strongest earthquake in 58 years struck on May 12 in Sichuan Province. China's 2008 oil demand may rise 4.7 percent to 7.9 million barrels a day, the International Energy Agency has said in forecast, according to Bloomberg News.

Sinopec will bring forward maintenance at the company's Zhongyuan, Dongfang and Shanghai ethylene units as it increases fuel production, the parent said. The company will import an estimated 2 million tons of fuels in the second quarter of this year, China Petrochemical said. Sinopec will also ask small, local refineries, known as teapot refineries, to process 1.3 million tons of crude during the period, it said.

Bigger rival PetroChina Co has maintained a suspension of diesel exports that began in September, to meet increased domestic demand, Shanghai Securities News said, citing deputy head of sales Tian Jinghui. The firm would normally export two diesel cargoes, totaling 60,000 tons monthly, the newspaper said.

PetroChina plans to import 2.4 million tons of the fuel in 2008 and purchases from overseas increased 50 percent in the first half from a year earlier. Its diesel output will rise 7 percent in June from May, Tian said.