South Korea refiners look to gain on strong 2022 products cracks, but cautious on 2023 margins

South Korean refiners are expected to report excellent earnings for 2022 when they release their financial results in February, helped by severe cracks in oil products and export margins over the past year. However, the global economic slowdown and a potential surge in Chinese supply would likely force the industry to play it safe in 2023.

Limited Chinese exports and trade hurdles for Russian barrels worked heavily in favor of South Korea’s refining industry, which has the largest export…