S-Oil sees firm third-quarter refining margins on summer demand, export curbs (updated)

S-Oil

03/08/2026 04:30

Adds bullet points from earnings call
SEOUL, Aug 3 (Reuters) - South Korea's S-Oil 010950.KS, whose main shareholder is Saudi Aramco 2223.SE, said on Monday it expects third-quarter refining margins to remain firm, supported by driving season demand, stronger power demand amid extreme heat and export restrictions in some countries. 
In the April-June period, the refiner said it operated the crude distillation units (CDUs) at its 669,000 barrels-per-day (bpd) oil refinery in the southeastern city of Ulsan at 76% of capacity, compared to 85% during January-March and 96% during 2025. 
Here are some details:
In an earnings call, S-Oil described global oil-product inventories as unusually low due to Middle East supply disruptions, shipping constraints around the Strait of Hormuz and the Red Sea, Russian refinery disruptions and export restrictions by Russia and China.
S-Oil said that current supply tightness is unlikely to resolve quickly even if some geopolitical disruptions ease.
The company has maintained stable crude procurement through alternative routes and sources, including non-Middle East crude, via UAE's Fujairah port, Saudi crude storage in South Korea's Ulsan, and the use of the government strategic-stockpile arrangements, it said.
In the case of potential disruption in the Red Sea route, S-Oil said some alternative routes such as the Suez Canal could add roughly 30 days to crude delivery timing. It has contingency plans involving borrowing from South Korean government stockpiles and emergency spot purchases.

 (Reporting by Joyce Lee
Editing by Ed Davies)
 ((joyce.lee@tr.com;))