Sasol’s share price plunges nearly 25% as oil price plummets
Embattled chemicals group Sasol’s share price fell by almost a quarter on Tuesday morning, with global energy stocks under pressure from volatility in the oil price.
Sasol’s losses on Tuesday morning brought its year to date loss to 85.83%, with the group on track for its worst daily performance in more than a month.
US crude oil futures turned negative for the first time in history on Monday, due to fear that the world is running out of storage space as the Covid-19 pandemic hits demand.
The share price of Sasol, which produces oil from coal, has been battered in 2020 due to a declining outlook for energy prices, and due to concerns of cost overruns at its Lake Charles project in the US. An explosion at that facility earlier in 2020 has also weighed on the group.
In morning trade on Tuesday, Sasol’s share price fell 21.76% to R43.51, having earlier plunged to as much as R42.02.