Sasol CEO expects oil volatility with long-term price around $60

Bloomberg

Sasol Ltd. expects a “volatile environment” for crude oil as geopolitics help sway the market. “It’s going to move back and forth depending on what’s happening in the world — political tensions, supply disruptions,” said Steve Cornell, co-chief executive officer of the South African energy and chemicals company. Market drivers include the much-anticipated US decision on the global nuclear deal with Iran, he said.
Oil has advanced in recent weeks on speculation over the fate of the nuclear accord and amid rising geopolitical tensions in other parts of the Middle East. Jitters over potential supply interruptions pushed up volatility last month to the highest since February, though levels remain far below those of early 2016.
“Higher oil prices are very positive for Sasol,” Cornell said on Tuesday in an interview on Bloomberg Television. “A large majority of the products that we make are somehow tied to the price of crude, especially in the chemical space, in the fuel space — our petrol, our diesel — our plastics, our alcohol-based products.”
The Johannesburg-based company deepened cost cuts in 2016 as the oil market languished in a three-year slump.