Business
S-Oil's Strong Refining Margins Could Persist — Market Talk
S-Oil's Strong Refining Margins Could Persist — Market Talk
About this update from S-oil Corporation
S-Oil's strong refining margins could persist even after the Middle East conflict ends, Shinyoung Securities' Shin Hong-joo says. Oil and petroleum-product prices are unlikely to fall sharply even after the war is over, the analyst writes in a note. Shin expects the Saudi Aramco-controlled South Korean oil refiner to post above-consensus 2Q earnings thanks to tight supply and strong margins. Crude-oil production and refining facilities in the Middle East have been damaged, and inventories depleted during the conflict are unlikely to recover quickly, he says. Given lower inventories and limited capacity expansion, the refining industry is expected to enter a longer upcycle than before the war, he adds.([email protected])