International oil prices decline, chemical stocks like Lotte Chemical surge at market close

International oil prices are showing a downward trend, while chemical-related stocks are closing higher. Due to fluctuations in oil prices, many companies such as Lotte Chemical experienced significant stock price volatility.

On the 18th, based on West Texas Intermediate (WTI) crude oil traded on the New York Mercantile Exchange, international oil prices fell by 3.61 per barrel, closing at $92.74. This contrasts with recent spikes caused by concerns over the Middle East situation, including Iran’s blockade of the Strait of Hormuz. As the possibility of Iran’s blockade diminishes, oil prices are retreating, and the chemical industry is rising in anticipation of lower costs.

Lotte Chemical’s stock price was boosted by the falling oil prices, surging 16.81% on that day. Its single-day volatility was notable, driven by market expectations that stabilized oil prices would ease cost pressures on chemical products. Not only Lotte Chemical, but also OCI Holdings, DL, Jinhu Petrochemical, and Hanwha Oil Chemical saw double-digit gains within a single day.

The visit of Prime Minister’s Office Director Kang Hyun-sik to the UAE and the confirmation of oil supply cooperation also contributed to the rise in chemical stocks. The UAE’s pledge to prioritize oil supplies to Korea is seen as a positive signal for energy stability.

This situation has led the market to expect future stability in oil supplies and enhanced competitiveness in the chemical industry. Considering the impact of oil price fluctuations on corporate operations, if this trend continues, positive changes are expected in the domestic chemical market.