On the morning of the 16th, stocks related to refining are continuing to show strength in the domestic stock market. This rise follows an Israeli attack on the area of Iran on the 13th (local time), prompting Iran to retaliate and causing international oil prices to surge.
As of 9:14 a.m. that day, Korea Oil is trading at 21,200 won, up by 4,040 won (23.54%) from the previous trading day on the securities market. In the KOSDAQ market, Hung-gu Oil has risen by 24.31% to 19,840 won, while Joongang Enervis has recorded an increase of 19.04%, trading at 25,950 won.
As the military conflict between Iran and Israel escalates, international oil prices are surging. On the 13th at the New York Mercantile Exchange, West Texas Intermediate (WTI) crude oil for the nearest month rose by 7.26% from the previous trading day, closing at $72.98 per barrel. This is the largest increase in oil prices since the Russian invasion of Ukraine in 2022.
When oil prices rise, corporations in the refining sector experience a 'lagging effect' where the difference between the timing of raw material purchases and product sales increases. However, a rise in oil prices can become an adverse factor that leads to inflation in the long term.
Kim Dae-jun, a researcher at Korea Investment & Securities, noted, "As the conflict between Israel and Iran intensifies, the pressure on oil prices is increasing," adding that "high oil prices are exacerbating inflation, and the trend of rate cuts is also retreating, posing adverse factors for the financial market."