Renewable energy stocks including Doosan Fuel Cell and SK Earthon declined sharply on the 27th as international oil prices fell approximately 5%. The declines followed easing concerns over Middle East oil supply disruptions, triggering profit-taking in stocks that had recently risen on oil price gains. According to the Korea Exchange, Doosan Fuel Cell traded at 30,000 won, down to its daily price limit of 29.91%, while SK Earthon plunged 27.44% to 58,700 won. The sell-off occurred after the US paused Iran airstrikes starting the 24th following 13 days of operations, and Iran stated it would halt military responses as long as US attacks remained suspended.
Doosan Fuel Cell and SK Earthon Record Sharp Declines
According to the Korea Exchange on the 27th, Doosan Fuel Cell currently trades at 30,000 won, down to its price limit of 29.91%. SK Earthon fell 22,200 won (27.44%) from the previous trading day to 58,700 won. HD Hyundai Energy Solutions dropped 18.66% to 133,400 won, while SK Ocean Plant declined 18.91% to 14,880 won.
Renewable energy stocks had shown steep gains recently as international oil prices surged due to heightened military tensions between the US and Iran, combined with expectations for the government's Power Purchase Agreement (PPA) activation policy. SK Earthon hit its upper price limit on the 23rd, with its stock price surpassing 80,000 won as Middle East risks intensified and expectations grew for expanded alternative energy demand.
Oil Prices Fall 4.9% Amid Middle East Tension Easing
According to Bloomberg, as of 8:30 AM Korean time on the 27th, September Brent crude futures and West Texas Intermediate (WTI) crude futures traded at $92.04 and $84.95 per barrel respectively, down 4.9% from the previous trading day. Brent crude fell below the $90 mark during the session, dropping to $89.58 at one point.
Concerns over Middle East oil supply disruptions eased after the US paused Iran airstrikes starting the 24th following 13 days of operations, and Iran stated it would halt military responses as long as US attacks remained suspended. The oil price decline rapidly cooled investor sentiment toward renewable energy stocks that had been considered beneficiaries of rising oil prices.
Houthi Attack on Saudi Aramco Maintains Regional Uncertainty
Analysts note that uncertainty has not been completely resolved. Yemeni Houthi rebels attacked Saudi Aramco oil facilities on the 25th, and tensions surrounding the Middle East situation continue amid prolonged armed conflict between the US and Iran. Brent crude has surged over 25% this month alone, suggesting profit-taking sales following the sharp short-term rally also contributed to the decline.
FAQ
What caused Doosan Fuel Cell and SK Earthon stocks to fall sharply on the 27th?
The stocks declined as international oil prices fell approximately 5% following easing Middle East oil supply disruption concerns, triggering profit-taking in renewable energy stocks that had recently risen on oil price gains.
How much did oil prices fall on the 27th?
According to Bloomberg, as of 8:30 AM Korean time, Brent crude futures and WTI crude futures traded at $92.04 and $84.95 per barrel respectively, down 4.9% from the previous trading day, with Brent crude falling below $90 during the session.
Why did concerns over Middle East oil supply disruptions ease?
The US paused Iran airstrikes starting the 24th following 13 days of operations, and Iran stated it would halt military responses as long as US attacks remained suspended.
