S-Oil sees strong Asia refining margins in Q4 on low stocks, heating demand

By Reuters News06:49 (UTC), 2 November 2026 Updated

SEOUL, Nov 2 (Reuters) - South Korea's S-Oil 010950.KS, a unit of Saudi Aramco 2223.SE, said on Monday that Asian refining margins in the fourth quarter are expected to be strong due to low global stocks of key products and heating demand.

Following are details of the company's earnings call:

The utilisation rate of its crude distillation unit (CDU) was 81% in the third quarter, versus 80% in the first half of 2026 and 96% in 2025, the company said in an earnings statement.
The CDU rate is forecast to rise in the fourth quarter through the sourcing of medium-grade Arab crude.
Refining margins are expected to stay strong even if the conflicts involving Russia or in the Middle East end, because repairs at damaged facilities will take a significant amount of time.
S-Oil is in talks with the South Korean government to seek compensation due to the government's cap on fuel prices.
A global shortage of lubricant is expected to continue in 2027, the company said.
S-Oil is relying on two routes in Saudi Arabia for shipping crude.