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Offer:Why are Sasol Shares Dropping?
Why are Sasol Shares Dropping? Factors that affect Sasol Shares include Supply, demand, market sentiment, and much more.
| 🔎 Company | 🥇 Sasol |
| 🌎 Country of Operation | South Africa |
| ⚙️ Operational | 22 Countries |
| ✅ Supplies | 100+ Countries |
| 📌 Products | Chemicals Energy Substainable Aviation Fuel |
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Why are Sasol Shares Dropping? – 2 Key Point Quick Overview
What influences oil prices?
Despite attempts to minimize its usage and discover other green energy sources, oil plays a vital role in the global economy. Oil is a commodity that is in great demand all around the world, which means that large swings in its price might have far-reaching consequences for the economy. As for what drives up the cost of a barrel of oil, there are two main factors that will explain why shares may drop or run:
- Supply and demand
- Market sentiment
Understanding supply and demand is elementary. It is reasonable to expect a price rise whenever demand outstrips supply. Conversely, the price ought to fall to the extent that demand falls (or supply rises). The oil futures market is responsible for determining the current price of oil. Therefore, when you buy a barrel of oil at a certain price on a future date, you are committing to a futures contract, which is a legally binding commitment.
Each party to a futures contract must make good on their end of the bargain by the agreed-upon deadline. Emotion is another major contributor to oil prices. As speculators and hedgers buy up oil futures contracts if oil consumption will surge in the future, current prices may rise dramatically.
The inverse is also correct, and oil futures contracts can be sold (short-sell or shorted) based on the idea that oil demand will decline at some point, leading to a drastic reduction in prices in the present.
Sasol Price Drop Q3 2025
During the first quarter of 2025, Sasol benefited from favorable macroeconomic environments compared to 2021. Following a declaration of force majeure on the local supply and export of key chemical goods, Sasol saw a drop of up to 9% in its share price in October. Furthermore, Sasol’s first-quarter sales volumes for 2025 were also lower than expected. In addition, Transnet strikes at Sasol’s Secunda and Sasolburg plants exacerbated the situation. As a result of backlogs across port and rail systems.
After a phased closure, the Secunda gasoline operations saw a 7% drop in output. In addition, high gas station costs have continued to put a damper on consumer demand for fuel. Reduced production and supply chain issues in Africa, lower demand in Eurasia, and higher sales volumes in America owing to the ramp-up of the Lake Charles Chemicals units all contributed to a 9% drop in chemical sales volumes compared to the first quarter of the 2025 fiscal year.
Quarterly problems for the chemicals industry included deteriorating consumer mood and rising energy costs in Europe, a slow recovery in demand in Asia after Covid-19, and a drop in demand in the United States because of rising interest rates.
As a result, the company’s ability to generate reliable volume predictions will likely be hampered throughout the remainder of the 2024 fiscal year, when more price and demand volatility is anticipated.
While Sasol has mostly stuck to its earlier market advice, investors’ faith in SOL shares has been shaken by recent events, including a strike by Transnet’s unions, which has disrupted South African rail and port services.
Conclusion
Overall, multiple factors affect Sasol Shares including Supply, demand, market sentiment, and much more.
Frequently Asked Questions
What is the future of Sasol shares?
According to analysts, Sasol (SOL) shares could reach 341.1 ZAR within the next year.
Where does Sasol get its oil?
Sasol engages in oil exploration and production off the coast of Gabon.
What is the highest Sasol share price ever recorded?
On June 8, 2014, SOL’s price reached an all-time high of 645.10 ZAR.
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