(Yicai Global) Jan. 4 -- State-owned China Petroleum and Chemical, also known as Sinopec, has not been able to immediately estimate and analyze its trading losses that took place in late December because it lacks experts to do that job, according to an insider.

Sinopec needs an expert team to evaluate the huge losses because it is not familiar with the transactions, online news website Sina reported on Jan. 1, citing an insider. Sinopec only knows the total losses but it still cannot figure out which losses are caused by hedging and which by speculation, the person added.

Sinopec assigned its trading arm China International United Petroleum & Chemicals to oversee transactions, the source said. Unipec built a complex option portfolio of Brent crude oil that matured on Dec. 25, and its position fell prey to a high amount of market volatility from Dec. 24 to Dec. 26. 

Brent crude slumped 5.63 percent to USD50.49 a barrel on Dec. 24 in London. Once markets opened again after Christmas Day, Brent oil rose up 9.3 percent to close at USD55.18 per barrel. 

Reports online suggested that Goldman Sachs' bullish position may have tricked Unipec to lose as much as CNY10 billion (USD1.5 billion). The New York-based investment bank refuted the claims, Yicai Global reported on Jan. 2. 

Sinopec's executives Chen Bo and Zhan Qi were suspended due to "severe trading losses," Reuters reported on Dec. 27, citing five unnamed sources. Shortly after, Sinopec's stock price [SHA: 600028] fell 6.75 percent to close at CNY5.25 (76 US cents). The share has risen 0.4 percent today to CNY5.07 at 2.06 p.m.

Chen Gang, Unipec's deputy general manager, is overseeing the firm's administration, the Beijing-based parent said in a statement on Dec. 27, adding that the firm is doing well in its production and operations. 

Editor: Emmi Laine