Chemicals group Sasol was on track for its worst day on the market in its history on Monday morning, with its share price halving as global oil counters were battered by the threat of oil’s biggest daily loss since 1991.
The share price of Sasol, which produces synthetic oil from coal, fell as much as 50% to R79 on Monday morning, wiping about R50bn off of its market capitalisation.
Oil prices earlier fell as much as 31% after the Saudi move to start a price war. This followed Russia’s refusal on Friday to put production cuts proposed by Opec into effect, putting oil on track for its worst day in almost three decades.
Sasol’s share price had already been under pressure after Moody’s Investors Service downgraded its long-term debt to junk status, amid cost overruns and production difficulties at its Lake Charles facility in the US.
- BusinessLIVE
