Sinopec and Sinochem Group have begun selling Nigerian and Ghanaian crude for May loadings after cutting refinery run rates by 10%, a rare move by China's majors. The decision reflects the impact of the Strait of Hormuz closure on crude supply and the need to balance domestic refinery output with market demand. China's state refiners have slashed processing rates in response to soaring oil prices and constrained Middle Eastern supply, following the closure of the Strait of Hormuz. Many Asian countries, including China, also banned fuel exports last month to protect domestic supply. Sinopec reduced its run rates by 10% in mid-March, cutting about half a million barrels per day. The cut, combined with maintenance losses, has pushed refinery runs below 70% of capacity, the lowest level since June 2022, according to Mysteel Oilchem data cited by Bloomberg. The sales to Asian refiners, mainly in Indonesia and Taiwan, come as private refiners face pressure to maintain gasoline and diesel output even at a loss, lest their crude import quotas be reduced by authorities. The state refiners' move to sell crude is a rare response to supply disruptions. On the other hand, Chinese authorities have reportedly ordered private refiners to maintain high levels of gasoline and diesel supply, even at a loss, or risk their crude import quotas being slashed if they reduce run rates. If the private refiners move to cut processing rates to preserve margins amid soaring crude prices, they would see their import quotas – handed out by the government in quarterly or semi-annual installments – reduced in the coming years, the officials warned. Meanwhile, China's refinery runs continued to slip, and state refiners last week operated at below 70% of capacity last week, the lowest level since June 2022, Bloomberg notes, citing data from Mysteel Oilchem.