South African oil and chemicals group Sasol on Tuesday touched a fresh high on the continued strength in the dollar oil price and a weaker rand, brokers said.
At 11am, Sasol’s shares were quoted at R146,60 on the JSE Securities Exchange, up 60 cents or 0,4% from its previous close.
Earlier, Sasol touched R147,50, eclipsing its previous all-time high of R146,90 achieved on Monday.
“Sasol is up on the higher oil price and the weaker rand. I think there is also a short squeeze in the stock as some traders are trying to pick a top in the Sasol share price,” a Johannesburg broker said.
London’s near-date Brent crude oil price closed on Monday at $50,06 a barrel, close to its all-time high of $51,95 a barrel achieved on October 28 2004.
Oil prices are getting support from a prolonged cold spell in the United States and expectations for the current firm price environment to continue in the short term, AFX reported on Tuesday.
Market players are also speculating that oil prices will rise further ahead of the Organisation of Petroleum Exporting Countries meeting on March 16, AFX added. — I-Net Bridge