South Korean refiner shares rise while broader market falls after Russia bans diesel exports

South Korean refiner shares rose sharply on July 13 after Russia imposed a temporary ban on diesel exports. SK Innovation Co. gained 7.09 percent while S-Oil added 5.6 percent, Yonhap reported. The broader KOSPI index fell 8.95 percent the same day.

Russia, the world's second-largest diesel exporter after the United States, announced the ban on July 8 following repeated Ukrainian drone attacks on its refineries. The restriction came as Middle East refining capacity remained below full recovery and concerns grew over potential disruptions at the Strait of Hormuz. U.S.

Diesel crack spreads widened from just over $60 per barrel in late June to more than $80 per barrel on the day of the announcement. South Korea ranks as the world's fifth-largest refining nation with combined capacity of 3.2 million barrels per day.

Its refiners exported 188.01 million barrels of petroleum products in the first five months of 2026, with diesel making up 40.6 percent of the total, according to Korea National Oil Corp.

Data. Industry analysts noted that the country's export-oriented refineries can increase diesel shipments quickly when global supplies tighten. "The sharp decline in Russia's refining capacity, coupled with the diesel export ban, is likely to support refining margins for a while," said Kang Jin-hyeok, an analyst at Shinhan Investment & Securities.