International oil prices return to the $90 range… refiners’ shares rise in tandem

Refining stocks are rising in tandem early in the session on the 12th. The move is seen as being driven by a renewed rebound in international oil prices despite news that the International Energy Agency (IEA) would release strategic reserves.

As of 9:13 a.m., Jungang Enerbis was up 1,800 won (6.23%) from the previous session at 30,700 won. Other refining-related names such as Heungkuk Petroleum (5.69%), Korea Petroleum (3.46%), Daesung Energy (3.13%) and Kukdong Oil & Chemicals (2.59%) were also broadly higher.

The strength appears to reflect persistent instability in the global energy market amid the war between the United States and Iran. Although the IEA decided on the 11th (local time) to release 400 million barrels of strategic reserves—the largest amount ever—this failed to push international oil prices lower.

On the ICE Futures Exchange, Brent crude futures for May delivery settled at $91.98 a barrel, up 4.8% from the previous session. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude futures for April delivery also settled at $87.25 a barrel, up 4.6%.

Bjarne Schieldrop, an analyst at Sweden’s SEB, told Reuters, “Even though this is the largest strategic stock release ever, the market seems to believe it will not help resolve the current crisis.”

Ko Jeong-sam, Hankyung.com reporter jsk@hankyung.com