[Market Focus] S-Oil Surges 18% on Inventory Valuation Gains Amid Middle East Conflict

S-Oil's stock price surged following airstrikes on Iran by the United States and Israel.

As of 9:30 a.m. on March 3, S-Oil was trading at 1,307,000 won, up 207,000 won (18.82%).

On February 28, after the United States and Israel carried out airstrikes on Iran and Iran retaliated across the Middle East, including against U.S. assets, the situation has shown signs of escalating. Additionally, Iran's elite Revolutionary Guard Corps (IRGC) has warned of attacks on ships attempting to transit the Strait of Hormuz. This strait accounts for about 20% of the world's maritime crude oil transportation volume.

Amid concerns over rising oil prices, expectations are growing for inventory valuation gains at oil refiners. Since crude oil was acquired at lower prices compared to the present, refining it into gasoline and diesel increases the profit margin accordingly.

Cho Hyunryul, a researcher at Samsung Securities, commented on S-Oil, stating, "If the Middle East conflict continues, the fact that S-Oil operates refining facilities focused on middle distillate products in Asia-where there is no risk of war-will serve as a geopolitical opportunity."

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