South Korean Prosecutors Indict Four Major Oil Refiners for Price Manipulation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: CNBC
- Price Manipulation Charges: South Korean prosecutors have indicted four major oil refiners—HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil—for violating fair trade laws by colluding to inflate domestic fuel prices, with a total impact estimated at 26 trillion won (approximately $19.2 billion).
- Collusion Details Revealed: Prosecutors allege that HD Hyundai Oilbank and SK Energy colluded on oil sales worth 14.2 trillion won (around $9.2 billion), while GS Caltex and S-Oil mimicked their pricing, indicating a systemic and long-standing practice rather than an isolated incident.
- Government's Firm Stance: South Korean President Lee Jae Myung warned on social media that oil refiners involved in price-fixing would be held accountable, vowing to employ all lawful measures against unethical business practices, demonstrating a zero-tolerance approach to market manipulation.
- Market Reaction: Despite the indictments, the stock prices of the four refiners rose, with S-Oil gaining 6.08%, SK Innovation up 1.58%, HD Hyundai increasing by 1.21%, and GS Holdings rising 6.99%, reflecting market confidence in their future performance.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 168.100
Low
158.00
Averages
176.95
High
206.00
Current: 168.100
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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