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Soaring global oil prices have led to small refiners drastically cutting down on production - forcing Sinopec to fill the void.Since the prices of refined oil products are set by the central government, the refiners - private or local-government-owned - find it unprofitable when the price of crude is as high as is now. Crude prices reached a record .80 a barrel at the New York close on Monday."Surging international crude prices are exerting mounting pressure on the local market (by discouraging small refiners). We are already running at full capacity to ensure fuel supply," Mao Jiaxiang, vice-president of Sinopec Economics & Development Research Institute, told China Daily Tuesday.Sinopec is Asia's top refiner, feeding the bulk of fuel consumption in China. But due to capacity limitations at its plants, there is a rising gap between demand and supply.Mao pointed out that fuel shortages are mainly triggered by the production drop at medium- and small-sized refiners scattered around the country, which contribute 5 to 10 percent of the country's supply.The National Development and Reform Commission (NDRC), the top economic planner, keeps a tight lid on domestic fuel prices to fend off inflation, only allowing refiners to set prices within an 8 percent band of a government-imposed benchmark.Sinopec will have more refining capacity on stream next year, which will help ease supply pressure, Mao said.This year, it is believed Sinopec may import more oil products from abroad if necessary. The company imported 60,000 tons of gasoline in September and sold it at a lower price.Gasoline retailers raised prices by 2.92 percent in the first nine months after crude costs climbed, the NDRC said in a statement on its website on Monday.However, the NDRC said last month that energy prices will not be raised "in principle" this year after the consumer price index (CPI) hit a 10-year high of 6.5 percent in August."As global crude prices and the CPI stay at high levels, it is possible for the authorities to seek a compromise by not raising fuel prices but giving subsidies to major refiners at the end of the year," said Niu Li, an economist with the State Information Center affiliated to the NDRC.

WASHINGTON - Senior officials from the United States and China are scheduled to hold a twice-yearly dialogue in Washington this week on bilateral and multilateral issues, AFP reported Monday, citing a statement by the US State Department. US deputy secretary of state John Negroponte and China's Executive Vice Foreign Minister Dai Bingguo will lead their teams to the two-day US-China "senior dialogue" beginning Wednesday, said the statement. The dialogue is expected to cover the countries' bilateral relations as well as a range of key global issues, including security in Northeast Asia, energy and the environment, Iran and the conflict in Sudan's Darfur. The dialogue "is an important forum for both countries to discuss issues of strategic and political importance, including how to achieve our common goals," according to the statement. US President George W. Bush and Chinese President Hu Jintao agreed in 2004 during a summit of the Asia Pacific Economic Cooperation ( APEC) forum to hold the talks among their officials as part of efforts to improve ties. US-China ties are clouded by a variety of issues, including US accusations that China is keeping its currency undervalued. Currency concerns dominated a US-China "strategic" economic dialogue last month led by Chinese Vice Premier Wu Yi and US Treasury Secretary Henry Paulson even as unveiled measures to boost trade and investment ties.Despite criticism from the US in particular, Chinese officials contend that currency reforms are moving as quickly as the developing economy and financial system will allow.

Chinese photographers said the South China tiger on digital pictures, released by forestry authorities and widely discussed on the Internet, is a fake.A preparatory digital picture appraisal center under the China Photographers Society, released the results on Sunday after a team of photographic experts assessed the 40 digital pictures provided by NetEase, a Chinese Internet company.The State Forestry Administration, however, on Tuesday refused to comment on the authenticity of these pictures, saying its responsibility is to protect the wildlife.Cao Qingyao, SFA spokesman, did cite previous investigation resultsat a press conference in Beijing, saying the investigators found some traces of South China tigers in Shaanxi, and said a new investigation in the area is under way, and the results will be announced as soon as possible. The center said technological analysis from last Tuesday through Sunday showed the South China tiger on the 40 pictures was not real and could not serve as evidence for the existence of the wild animal.The pictures must have been taken by people with photographic experience or under guidance and could not be done independently by a person without any photographic experience, claimed experts.The digital picture, purporting to be a wild South China tiger crouching in the midst of green bushes, was released by the Forestry Department of northwest China's Shaanxi Province at a news conference on October12.Zhou Zhenglong, 52, a farmer and former hunter in Chengguan Township of Shaanxi's Zhenping County, photographed the tiger with a digital camera and on film on the afternoon of October 3, a department spokesman said.The Shaanxi forestry department said it had confirmed the 40 digital pictures and 31 film photographs were genuine.But the pictures released were not the original ones and they underwent modifications, such as time and signal, according to experts.Bao Kun, an expert who participated in the appraisal by the center, told Xinhua they announced the results out of "a citizen's sense of social responsibility."A detailed report concerning the appraisal would be announced in about a week, Bao added.In response to the appraisal results, the Shaanxi provincial forestry department said in a written statement to media that they had already "showed their attitude toward the South China tiger issue and would continue to pay attention to the matter.""We thank netizens and media for your care of the South China tiger and of the wildlife protection cause," the statement said, offering no direct comment on the appraisal results."In a statement on November 23 the department said: "We firmly believe this basic fact: That wild South China tigers exist in Zhenping county of Shaanxi Province."The South China tiger, from which other sub-species such as the Siberian tiger evolved, is listed as one of the world's ten most endangered animals.It is the only tiger subspecies native to China's central and southern areas. In the early 1950s, its population was 4,000 across the country. Since 1964, no sightings of wild tigers have been reported in Shaanxi.Its former habitats were in Guangdong Province, Guangxi Zhuang Autonomous Region and the central provinces of Hunan and Jiangxi.

BEIJING - Floods and landslides have killed at least 360 people across China this summer and destroyed more than 4 million hectares (15.4 million sq miles) of crops, Xinhua news agency said on Wednesday. Direct economic losses were 24.3 billion yuan (.21 billion), according to latest figures from the State Flood Control and Drought Relief Headquarters. "Apart from 217,000 houses wholly or partially destroyed, more than 4.28 million hectares of grain crops have been hit, with 2.03 million hectares totally destroyed," headquarters deputy director Cheng Dianlong was quoted as saying. Most of the deaths occurred after downpours across the Jialing River Valley in the southwest province of Sichuan which have resulted in floods in almost all the tributaries of Jujiang River, a branch of the Jialing, and triggered severe mountain torrents, mud-rock flows and landslides. "Ferocious floods battered 40 counties along their route, submerging the downtown areas of four counties and shattering two small dams," Xinhua said. Cheng warned the situation across the Huai River Valley was at flashpoint with all trunk rivers there reporting dangerously high water levels. China flooded dozens of evacuated villages to ease pressure from the swollen Huai in the eastern province of Anhui. More rain was forecast for the next two days along the Huai, flowing through the central province of Henan and the eastern provinces of Anhui and Jiangsu. A total of 545 people were killed by natural disasters in China in the first half of the year, according to a report released by the Ministry of Civil Affairs. Another 78 people went missing as a result of natural disasters, including floods, landslides, mudflows, gales, snowstorms and earthquakes.

CHENGDU - About 3.8 trillion cubic meters of natural gas deposits have been discovered in southwest China's Sichuan Basin, with verified exploitable reserves topping 600 billion cubic meters. The reserves were discovered in Dazhou, a gas-rich city in Sichuan Province. By 2010, the newly found deposits will raise the city's gas output to 24 billion cubic meters and sulphur to more than 4.3 million tons, according to a Dazhou official at the on-going Western China International Economy-Trade Fair on Saturday. China National Petroleum Corporation (CNPC), the country's biggest oil and gas producer, and Sinopec Corporation, China's largest refiner, plan to build five purification plants in Dazhou and are expected to purify a total of 74 million cubic meters of natural gas a day by 2010. Dazhou City, located in eastern Sichuan, covers an area of 16,600 square kilometers with a population of 6.46 million.