Sinopec drops Russian Urals crude deal-sources

BEIJING, May 20 (Reuters) - China's Sinopec Corp (0386.HK), Asia's top refiner, has dropped a one-year deal to import Russian Urals from European trader Mercuria, trading sources said.

"The deal for 2008 renewal has been dropped," said one Beijing-based source familiar with the supply talks.

Under the existing contract that ends in June, the Chinese firm agreed to buy from Mercuria about 120,000 barrels per day of the Russian crude for a year, and parties were supposed to renew the agreement for 2008.

(Reporting by Chen Aizhu; Editing by Anne Marie Roantree)

(aizhu.chen@thomsonreuters.com; Reuters Messaging: aizhu.chen.reuters.com@reuters.net; +8610 6627 1211)