Sasol is biggest SA loser in oil price collapse

JOHANNESBURG – Petrochemicals giant Sasol became the biggest South African casualty of the collapse in the oil price, plunging 46.56 percent to R85.35 yesterday following failed talks between Russia and the Opec alliance at the weekend.

Brent crude oil prices yesterday crashed 31 percent to $36.30 a barrel, the lowest level since 1991, amid an oil bloodbath prompted by Saudi Arabia’s decision to slash its oil prices over the weekend by about 10 percent after Russia walked away from the negotiating table.

Russia on Friday refused to join Opec’s production cut as the coronavirus continues to ravage the global economy and, with it, demand for oil, pitting Russia against Saudi Arabia.

Analysts said Sasol’s share price plunge was the latest blow for the group, whose stock has slumped 78.59percent in the past year alone.

International rating agency Moody’s on Friday cut Sasol’s credit rating to junk on concerns that its debt level for the US-based Charles Lake Chemicals Project (LCCP) was too high.