Hung-gu Oil(024060) is surging in early trading as international oil prices jump. As geopolitical tensions between the United States and Iran intensify and crude prices climb sharply, buying appears to be flocking to Hung-gu Oil, a domestic refining and oil-related stock.
At 9:20 a.m. on the 20th, Hung-gu Oil was trading at 12,870 won on the KOSDAQ market, up 860 won (7.16%) from the previous session.
Hung-gu Oil is a company that supplies gasoline, kerosene and diesel, based in Daegu and North Gyeongsang. It is considered a representative refining and oil theme stock that reacts sensitively to energy price fluctuations.
Hung-gu Oil's early strength appears to be influenced by the recent rise across international crude futures prices due to the fallout from military clashes in the Middle East.
September delivery Brent crude futures topped $90 a barrel, the first time in about a month since on the 11th of last month that Brent crossed $90. August delivery West Texas Intermediate (WTI) futures also broke above $85 a barrel.
The confrontation between the United States and Iran is heading toward a full-scale war. The two countries nullified their memorandum of understanding (MOU) on ending hostilities and resumed mutual airstrikes, leading to additional U.S. military deaths. Major foreign media also reported that the two countries' cease-fire relationship has effectively ended.