Domestic refining stocks are showing strength early in the session, buoyed by a surge in international oil prices as military tensions between the United States and Iran flare again.
As of 9:43 a.m. on the 30th, GS Holdings(078930) is trading at 90,600 won on the main bourse, up 6,500 won (7.73%) from the previous session.
At the same time, SK Innovation is up 5.57%, and Daesung Industrial (5.14%) and S-Oil (3.64%) are also rising.
The strength in refining stocks is seen as stemming from a jump in international oil prices as armed clashes between the United States and Iran intensify again. Rising oil prices are a boon for refining stocks by boosting inventory valuation gains for refiners that secured crude in advance and raising expectations for improved refining margins.
Overnight, U.S. President Donald Trump, referring to Iran's attack on the U.S. military base in Jordan, said, "We will beat them up," and "We will strike hard," signaling a retaliatory strike. After that, the U.S. military was reported to have resumed airstrikes against Iran on the 29th (local time). It was the first time in six days since on the 23rd.
International oil prices also jumped sharply. On the ICE Futures Exchange, September Brent crude futures rose 7.9% from the previous session to $90.74 a barrel, while on the New York Mercantile Exchange (NYMEX), September West Texas Intermediate (WTI) climbed 6.6% to $84.46 a barrel.