Oil Plunges 7% on US-Iran Talks, Korean Refiners Slide Sharply
Hopes for renewed dialogue between Washington and Tehran cool fears of supply shocks and send S-Oil, SK Innovation and GS sharply lower.
South Korean – (Special Correspondent/Web Desk) – Oil plunges 7% on US-Iran talks, and the shock hit South Korean refining stocks hard in early trading on November 3.
Crude prices fell more than 7% in one day. Traders now hope the United States and Iran may start talking again.
In London, Brent crude for December delivery settled at $104.77 a barrel. That is a fall of 7.63% from the day before.
In New York, West Texas Intermediate (WTI) ended at $96.46 a barrel. It lost 7.36% in the same session.
Korean refiners fall fast
The drop hurt refiners in Seoul right away. At 9:57 a.m., S-Oil traded at 115,200 won, down 11.38%. At one point it fell as much as 12%.
SK Innovation lost 9.28% and traded at 119,200 won. GS slipped 8.20% to 76,100 won.
Other fuel-linked firms also weakened. Heunggu Oil fell about 6%. SK Discovery, SK and Daesung Industrial were lower too. S-Oil Pref and GS Pref dropped about 4% and 3%.
Why talks matter
Iran is said to be discussing the reopening of the Strait of Hormuz. It is also looking at peace talks through mediators such as Qatar and Pakistan.
Iranian President Masoud Pezeshkian said he wants dialogue to end the crisis.
US President Donald Trump spoke at the Lincoln Memorial. He said Iran wants a deal and that one is possible. Talks before the US midterm elections also lifted market mood.
What it means for refiners
Refiners buy crude months before they sell fuel. When oil prices fall fast, the value of their stored oil drops. This hurts short-term profit.
Cheaper crude imports can help offset that loss. In the end, profit will depend on refining margins and how much oil each firm holds.
Analysts say the fall removes part of the fear premium built up on worries about a wider war. Oil rose more than 10% last month on fears of escalation after the midterms.
If hopes for peace grow, prices may fall further. If talks stall or Hormuz tensions rise again, oil and refining stocks could quickly turn higher. The market looks set to stay volatile for now.
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