SK Innovation is experiencing a decline in its stock price during the latter part of the trading session. The drop follows a sharp rise in share prices driven by expectations of increasing international oil prices and refining margins, coupled with profit-taking activities. Additionally, rising freight rates are also putting pressure on the stock.
As of 2:02 PM, SK Innovation shares are trading at 143,600 won, down 10,600 won (6.87%) from the previous trading day. The stock opened at 153,400 won and peaked at 155,500 won during the session before reversing course and falling to 140,400 won.
Other refining stocks are also showing weakness. S-Oil has dropped 8,300 won (5.6%) to 139,600 won, while Korea Shell Oil is down 29,000 won (5.3%) to 518,000 won.
The profit-taking activities coincide with mixed signals from international oil prices. On October 21, West Texas Intermediate (WTI) crude for December delivery closed at $97.15 per barrel, down 0.7% from the previous day. Meanwhile, Brent crude finished slightly higher at $108.82 per barrel.
The surge in maritime shipping costs due to instability in the Middle East is also raising concerns about the profitability of refining stocks. Freight rates for very large crude carriers on major routes have skyrocketed to between $20 and $40 per barrel, significantly exceeding normal levels. The costs of transporting crude oil from the Middle East to Asia and Europe, as well as from Africa to Europe, have surged dramatically.
Short-term uncertainties are expected to persist. Reports suggest that military conflicts in the Middle East may escalate following the U.S. midterm elections.
As of 2:02 PM, SK Innovation shares are trading at 143,600 won, down 10,600 won (6.87%) from the previous trading day. The stock opened at 153,400 won and peaked at 155,500 won during the session before reversing course and falling to 140,400 won.
Other refining stocks are also showing weakness. S-Oil has dropped 8,300 won (5.6%) to 139,600 won, while Korea Shell Oil is down 29,000 won (5.3%) to 518,000 won.
The profit-taking activities coincide with mixed signals from international oil prices. On October 21, West Texas Intermediate (WTI) crude for December delivery closed at $97.15 per barrel, down 0.7% from the previous day. Meanwhile, Brent crude finished slightly higher at $108.82 per barrel.
The surge in maritime shipping costs due to instability in the Middle East is also raising concerns about the profitability of refining stocks. Freight rates for very large crude carriers on major routes have skyrocketed to between $20 and $40 per barrel, significantly exceeding normal levels. The costs of transporting crude oil from the Middle East to Asia and Europe, as well as from Africa to Europe, have surged dramatically.
Short-term uncertainties are expected to persist. Reports suggest that military conflicts in the Middle East may escalate following the U.S. midterm elections.
* This article has been translated by AI.
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