UPDATE 1-Sinopec refining in loss in Oct, Q4 sales to improve

BEIJING, Oct 28 - China's Sinopec Corp <0386.HK> <600028.SS> made a loss in its refining business this month because of the recent rally in crude oil prices, Senior Vice President Zhang Jianhua said on Wednesday.

Zhang's remarks came as Chinese fuel dealers were anticipating another imminent government fuel price hike under a price regime that tracks global crude costs. Beijing last trimmed gasoline and diesel prices by 3 percent in late September.

Zhang also said the top Asian refiner's refined fuel sales had finally exceeded year-ago levels since August.

"Refined fuel sales have posted a positive growth rate since August and sales in the fourth quarter will definitely be above last year," Zhang told reporters on the sidelines of an industry conference.

The growth, following year-on-year falls for most of the first half of 2009, provided evidence fuel demand in the world's second-largest oil user has rebounded on the back of a consolidating economic recovery.

Zhang, however, added that fourth quarter sales growth would be from a weak base a year ago, when demand slid sharply amid the global financial crisis.

The Shanghai Securities News on Wednesday quoted a company source as saying Sinopec was posting profits in other sectors such as oil products sales and chemicals.