The Star Early Edition - - BUSINESS REPORT - Siseko Njobeni

AS SA­SOL en­ters the sec­ond half of its 2017 fi­nan­cial year, the listed chem­i­cals and energy group will be hop­ing that Or­ga­ni­za­tion of the Petroleum Ex­port­ing Coun­tries (Opec) and non-Opec mem­bers will stick to their De­cem­ber 2016 agree­ment to re­duce out­put in or­der to stim­u­late oil price in­creases. The oil price has a bear­ing on Sa­sol’s prof­its. Ac­cord­ing to the group, for ev­ery US$1 per bar­rel in­crease in the an­nual aver­age crude oil price, op­er­at­ing profit was ex­pected to in­crease by about R820 mil­lion in 2017 fi­nan­cial year. In the 2016 fi­nan­cial year, the crude oil price av­er­aged $43,37 per bar­rel. Brent crude oil was $56.37 a bar­rel at 5pm yes­ter­day. Sa­sol’s share price has tracked the global oil price move­ments. It fell from a five-year high of R652.99 in June 2014 to ... at the close of busi­ness yes­ter­day. The fall in the share price co­in­cided with the plum­met­ing oil prices. The crude oil price was last seen at more than $110 a bar­rel in June 2014. Since then the oil price has been rel­a­tively low.

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