As the possibility of peace negotiations between the United States and Iran emerged, international oil prices plummeted by over 7%, leading to a decline in domestic refinery stocks.
According to the Korea Exchange, as of 9:30 a.m., S-Oil was trading at 115,500 won, down 16,600 won (12.85%) from the previous trading day. The stock price initially fell to 111,800 won shortly after the market opened but showed slight recovery.
At the same time, SK Innovation was trading at 119,400 won, down 11,900 won (9.06%) from the previous day. GS, the holding company of the unlisted GS Caltex, also saw a decline of 7,400 won (8.81%), trading at 75,500 won.
On the London ICE Futures Exchange, Brent crude oil for December delivery closed at $104.77 per barrel, down 7.63%. Meanwhile, West Texas Intermediate (WTI) crude for December delivery on the New York Mercantile Exchange finished at $96.46 per barrel, a decrease of 7.36%.
The drop in oil prices is attributed to expectations of a diplomatic breakthrough that could end the conflict between the U.S. and Iran.
According to foreign reports, Iran has proposed a plan to reopen the Strait of Hormuz within two days if the U.S. agrees to its conditions for lifting the blockade. President Donald Trump also indicated that an agreement could be reached.
The decline in international oil prices may reduce the inventory valuation gains for refiners, potentially dampening investor sentiment.
* This article has been translated by AI.
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