[Featured Stock] S-Oil Drops 5% Intraday Amid Volatile International Oil Prices

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] Oil refining stocks are declining as international oil prices plunged sharply in one day due to concerns over a global economic recession.

At 9:40 a.m. on the 31st, S-Oil recorded 99,100 KRW, down 5.6% from the previous trading day. The company’s stock price fell to as low as 98,500 KRW during the session. SK Innovation also experienced a decline of over 4.3% during the session.

On the 30th (local time) at the New York Mercantile Exchange (NYMEX), October delivery futures for West Texas Intermediate (WTI) crude oil fell $5.37 (5.5%) from the previous trading day to $91.64 per barrel. The decline was driven by forecasts that global oil demand would decrease due to the economic recession.

Kim Kwang-rae, a researcher at Samsung Futures, analyzed, “Reports that gasoline prices in the U.S. have dropped below pre-Ukraine crisis levels as the driving season nears its end, and that gasoline inventories have not shown the usual decline since the start of the driving season, have drawn attention. Additionally, the possibility of a giant (75bp) rate hike by the U.S. Federal Reserve (Fed) and the ECB has also exerted downward pressure.”