Shares of South Korean oil-related businesses posted mixed performances Tuesday, in the wake of Saudi Arabia’s decision to shut down nearly half of its oil production after a series of drone strikes on key installations.
Shares of petroleum product distributor Joongang Enervis closed nearly 21 percent higher from the previous session, at 10,250 won ($8.61).
Hunggu Oil, which is engaged in the wholesale and retail sale of petroleum products, extended gains for the second day, and closed nearly 30 percent up at 8,480 won.
Both firms are listed on the secondary tech-heavy Kosdaq bourse.
Meanwhile, major refinery S-Oil’s shares shed nearly 1 percent and closed at 101,000 won. The firm, with Saudi Aramco as its No.1 shareholder, is listed on the main Kospi market.
“Oil stocks have spiked as they have been affected in terms of stock assessment when oil prices soar,” said Lee Ji-yeon, an analyst at Shinyoung Securities.
“Traditionally, when crude oil prices spike, it is difficult to be reflected in the stock market when the supply and demand is not good. But Korea’s oil supply chain is very stable right now, which is why Saudi Aramco’s situation buoyed the stocks.”
Oil prices ended nearly 15 percent higher Tuesday, with the Brent benchmark surging 20 percent in the early trading hours before dropping, marking its biggest jump in decades. US oil prices also saw a 14.7 percent surge during trading, the biggest jump since 2008.
By Jung Min-kyung (firstname.lastname@example.org