[Featured Stock] 'Ukraine Gas Pipeline Halt, Will Oil Prices Rise Further?'... S-OIL Up Over 4%

[Asia Economy Reporter Hwang Yoon-joo] S-OIL is on the rise amid concerns over energy supply and demand following the suspension of the Ukraine gas pipeline. Discussions within the European Union (EU) to ban imports of Russian crude oil are also fueling the stock price increase.

As of 10:10 AM on the 12th, S-OIL is trading at 110,000 KRW, up 4.25% (4,000 KRW) compared to the previous close.

S-OIL is the only domestic refining stock focusing on its core refining and petrochemical business. It is the first and biggest beneficiary when international oil prices rise or crude oil demand increases.

On the previous day, Ukraine’s state-owned gas transportation company 'GTSOU' announced the suspension of operations at the gas compression facility in Novopskov, Luhansk Province, due to Russian interference. This caused European natural gas prices to surge, expanding concerns over crude oil supply. This is because the Novopskov facility accounts for one-third of Russian gas imported into Europe.

International oil prices also rose. On the 11th (local time), the June delivery futures price of West Texas Intermediate (WTI) crude oil in the U.S. rose 6% from the previous day to $105.71 per barrel. When international oil prices rise, refiners benefit from inventory revaluation gains on their financial statements. The recent surge in refining margins is also contributing to the rise in S-OIL’s stock price.

This content was produced with the assistance of AI translation services.