Sinopec Loss on Oil Prices Wild Swings at $1.5b

Chinese state-owned oil major Sinopec sank as much as 5% in stock markets last week following reports of massive losses from petroleum contracts and the suspension of two executives.
Sinopec said Thursday that weak oil prices fueled "some losses" on crude oil transactions for subsidiary China International United Petroleum and Chemical, a trading company commonly known as Unipec, Nikkei.com reported. 
Media reports indicate the loss may have originated from crude oil options gone sour.
Many industry watchers estimate the losses at $1.45 billion. A major financial institution sees declining oil prices generating $2 billion in losses for the company between October 2018 and January 2019, stemming mainly from this transaction.
Such an amount would equate to nearly a full quarter of profit for Sinopec, which reported $3 billion in net profit for the first quarter of 2018. The company, formally known as China Petroleum & Chemical, says it is still evaluating the situation.
Sinopec also said Thursday that Unipec President Chen Bo had been suspended due to "work reasons," along with Zhan Qi, secretary of Unipec's internal Communist Party committee. A vice president has assumed administrative duties at Unipec, and production and operation are continuing as normal at the larger group, the parent company said.