A reset for Sasol
Some say that Opec is effectively dead. If that is the case, we asked Sasol CEO Fleetwood Grobler whether it will fundamentally change Sasol’s business case
A high-stakes game of chicken between Saudi Arabia and Russia is over with this week’s deal, under Opec’s banner, to cut 9.7-million barrels of oil production per day in May and June. The cuts are the biggest in history, but there’s still doubt that it will compensate for the extraordinary collapse in demand — which traders reckon to be double the size of Opec’s production cuts — because of the Covid-19 lockdowns. Still, there’s more support for the oil price, which is critical for SA petrochemicals player Sasol, whose shares have doubled since skidding to their lows of under R30 just two weeks ago. But some say that Opec is effectively dead. If that is the case, we asked Sasol CEO Fleetwood Grobler whether it will fundamentally change Sasol’s business case.
FG: You know, markets are effective in the end and markets can’t withstand supplying and pumping oil at a negative value or at $10 a barrel...
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