[Stock in Focus] Korea Petroleum Hits Upper Price Limit on Surge in Oil Prices Driven by Middle East Risks

Korea Petroleum hit the upper price limit in the early trading session on March 3, driven by a surge in oil prices due to geopolitical risks in the Middle East.

At around 9:25 a.m. on this day at the Korea Exchange, Korea Petroleum soared to the upper price limit, trading at 21,150 won, up 29.7% from the previous session.

Earlier, over the weekend, following a U.S. strike on Iran, Iran blocked the Strait of Hormuz, a major oil transport route, causing international oil prices to soar. On March 2, on the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for April delivery closed at $71.23 per barrel, up 6.28% from the previous session.

Hwang Sung-hyun, a researcher at Eugene Investment & Securities, explained, "According to our estimates, if the Strait of Hormuz is blocked, oil inventories could decrease by more than 20 million barrels per day. If the war is prolonged, we should also consider the possibility that international oil prices could reach as high as $120 per barrel."

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