U.S. Diesel Export Suspension Looms as Global Supply Chain Concerns Mount

The global supply and demand situation is becoming increasingly concerning as the U.S. considers suspending exports of diesel, according to Cho Hyun-ryul, a senior researcher at Samsung Securities Co., Ltd.

Diesel exports from the U.S. amount to 1.3 to 1.5 million barrels per day, accounting for around 5% of global demand. This makes the country the largest exporter by a single country.

The looming export suspension is not just about whether it happens or not, but also about the supply and demand situation that prompted this consideration in the first place. The high demand for heating will begin in earnest from December, which means the margin will continue to be strong until the first half of next year.

S-OIL has raised its 2027 return on equity (ROE) forecast from 11% to 19%, and its target stock price will be raised further from KRW 165,000 to KRW 210,000. The company maintains top-pick opinions within the industry.