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S-Oil Predicts Strong Q3 Margins Amid Summer Demand
3 Aug
Summary
- S-Oil anticipates firm refining margins for the third quarter.
- Driving season and extreme heat are boosting power demand.
- Refinery operated at 76% capacity in the second quarter of 2026.
South Korea's S-Oil anticipates a robust third quarter for its refining margins. The company, whose primary shareholder is Saudi Aramco, forecasts continued strength driven by seasonal factors and high energy needs.
The summer driving season is expected to maintain strong demand for refined products. Simultaneously, extreme heat is increasing the need for power generation, which also supports energy markets. These factors, combined with export limitations in some nations, are creating a favorable environment for S-Oil's performance.
In the second quarter of 2026, S-Oil's Ulsan refinery operated at 76% of its crude distillation unit capacity. This utilization rate was lower than the 85% capacity utilized in the first quarter of 2026 and the 96% capacity utilization in 2025.
