China's top refiner Sinopec reported a strong first quarter as higher crude prices lifted inventory values and stable domestic fuel sales helped to offset pressure from disrupted Middle East supply. China Petroleum & Chemical Corporation (Sinopec) reported first-quarter net income of 17 billion yuan ($2.49 billion), up 28% from a year earlier, according to a Shanghai exchange filing. The results land as major oil companies begin showing how the Iran-driven supply shock is feeding through earnings. Throughput at Sinopec slipped 0.2% year over year to 62.02 million metric tons, or 5.03 million barrels per day (bpd), while refined fuel sales edged down 0.2% to 55.46 million tons. Domestic sales, however, rose 0.6%. China had capped domestic fuel price increases twice during the quarter, limiting margin upside for refiners as crude prices climbed. The company cut its March refining runs by 5% as the war disrupted Middle East crude flows, yet still grew profit sharply. Upstream helped carry the quarter. Oil and gas output rose 0.4% to 131.5 million barrels of oil equivalent (boe). Domestic crude production rose 1%. Natural gas output also edged upward. Capital spending moved sharply higher. Sinopec spent 25.17 billion yuan in the quarter, up from 18.25 billion yuan a year earlier, with 62% directed to upstream oil and gas projects. Chemicals remained a weak spot. Ethylene output fell 8% as petrochemical margins stayed under pressure. BP on Tuesday also reported a strong Q1 performance as higher oil and gas prices boosted results, reinforcing how integrated majors with upstream exposure are benefiting from volatility even as supply disruptions strain consuming economies. BP