Refining Stocks Rise in Tandem on Surge in Global Oil Prices; S-Oil Up More Than 6% [Stocks NOW]

[Financial News] Domestic refining stocks are rising in tandem during intraday trading as international oil prices surge amid geopolitical tensions in the Middle East and concerns over shortages of petroleum products.
As of 10:28 a.m. on the 2nd, S-Oil was trading at 159,100 won, up 10,300 won, or 6.92%, from the previous trading day. The stock opened at 151,400 won and climbed as high as 161,200 won during the session.
At the same time, SK Innovation was trading at 147,400 won, up 7,800 won, or 5.59%, from the previous trading day. It rose as high as 148,300 won during the session. GS Group, the holding company with unlisted GS Caltex as a subsidiary, was also trading at 104,900 won, up 2,700 won, or 2.64%.
International oil prices surged the previous day as geopolitical tensions in the Middle East intensified. December Brent Crude Oil rose $4.28, or 4.37%, to $102.31 per barrel, while West Texas Intermediate crude oil (WTI) gained $2.45, or 2.71%, to $92.87 per barrel.
Concerns about disruptions to crude oil supplies grew amid reports that the United States could deploy additional aircraft carriers and troops to the Middle East. Reports that Chinese refiners had halted petroleum product exports also appear to have heightened concerns about supply shortages.
Higher international oil prices can increase refiners' inventory valuation gains on their holdings of crude oil and petroleum products. Expectations of improved refining margins resulting from reduced supplies of petroleum products also appear to have boosted investor sentiment toward refining stocks.

[email protected] Lee Jeong-hwa Reporter