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Commodities

SK Innovation and Energy Stocks on Watch Amid Geopolitical Risks

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Natural Gas
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Energy markets are under pressure as geopolitical risks and US CPI releases impact oil, gold, and bond expectations.

Among global energy producers, SK Innovation (KOSE:A096770) is particularly exposed due to its upstream exposure to crude and natural gas, which can benefit from stronger pricing. However, its refining and petrochemical units are vulnerable to margin swings.

The company's pivot towards battery and energy solutions comes with heavy capital expenditures, leverage pressure, and execution risks. Its recent Q1 2026 results showed a move back to profit, raising questions about how this mix of oil leverage, electrification exposure, and balance sheet strain may evolve.

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