Saudi Arabia cuts official crude oil prices, NH Investment & Securities raises S-Oil profit forecast by 17%-26%

(1) An analyst from NH Investment & Securities pointed out that Saudi Aramco has set the official selling price of Arab Light crude oil for exports to Asia in September and October at a $2/barrel discount to the Oman/Dubai average price, further widening the discount from $1.5/barrel in August and continuing the downward trend. This will directly reduce S-Oil’s crude oil procurement costs. (2) As a South Korean refiner majority-owned by Saudi Aramco, S-Oil’s profit margin will benefit from this; the ongoing blockade of the Strait of Hormuz is driving global oil imports to shift away from the Middle East, accelerating the region’s loss of dominance in the global oil market. (3) Based on these factors, NH Investment & Securities has raised its operating profit forecasts for S-Oil in 2026 and 2027 by 17% and 26%, respectively.