Sasol Comeback? SOLJ Shares Rockets 100% as Oil Price Surges on War Fears
Sasol Limited (JSE: SOL) experienced a dramatic rebound last week, fueled by rising oil prices and intensifying geopolitical tensions...
Quick overview
- Sasol Limited's share price surged nearly 100% in just over two months, reaching multi-month highs due to rising oil prices and geopolitical tensions.
- The company's stock gained 10% in a single day as WTI crude oil prices spiked amid conflict between Israel and Iran.
- Sasol's technical indicators show a bullish trend, having broken through key moving averages, suggesting potential for further gains.
- Investor sentiment has improved with Sasol's commitment to reducing emissions while maintaining coal usage, attracting institutional interest.
Sasol Limited (JSE: SOL) experienced a dramatic rebound last week, fueled by rising oil prices and intensifying geopolitical tensions, pushing its share price to multi-month highs.
Sasol Surges as Oil Rallies Amid Middle East Conflict
After spending years in a downward spiral, shares of Sasol Limited have staged a remarkable recovery since early April. The petrochemical and energy group saw its stock price climb from a low of 5,200 ZAC to close at 9,656 ZAC (R96.56) on Friday—a staggering near-100% gain in just over two months. Much of the surge came last week, when geopolitical tensions in the Middle East drove oil prices sharply higher, adding momentum to Sasol’s rally.
Oil Spike Ignites Share Momentum
As Israel and Iran exchanged missile fire, global oil markets responded swiftly. WTI crude oil jumped by $11, reaching a high of $77.65, before settling at $71.31. Investors flocked to energy stocks, anticipating stronger margins for oil producers. Sasol—highly sensitive to oil price fluctuations—benefited significantly, outpacing broader market losses with a 10% single-day gain on the JSE.
Sasol Share Chart Daily – Technical Breakout Fuels Optimism
Sasol’s rally gained technical credibility on Friday as it broke through the 200-day simple moving average (purple)—a major resistance level. Support from the 20-day SMA further validates the uptrend.
Sasol Chart Weekly – A Break Above the 50 SMA Would Escalate the Upside
On the weekly chart, Sasol has also cleared the 20-week SMA and is approaching the 50-week SMA, a key hurdle. Should momentum continue, breaching the 200-week SMA (near R20) would confirm a long-term bullish reversal—nearly 200% upside from current levels. While ambitious, it remains within reach given Sasol’s recent pace.
Green Strategy Boosts Sentiment
Investor sentiment has also been bolstered by Sasol’s updated emissions and coal strategy, presented ahead of its May 20 Capital Markets Day. CEO Simon Baloyi emphasized a balanced approach: continuing to utilize South Africa’s vast coal reserves while committing to a 30% reduction in greenhouse gas emissions by 2030. Unlike earlier strategies favoring a complete shift to natural gas and hydrogen, this pragmatic hybrid model has been viewed as more executable.
Sasol remains South Africa’s second-largest polluter, but the dual commitment to sustainability and profitability has helped reframe its outlook in the eyes of investors.
Institutional Interest Picks Up
Hedge funds and institutions are beginning to reposition. Lindbrook Capital LLC recently increased its stake in Sasol by 76.8% during Q4, now holding 7,194 shares valued at $33,000. This points to a growing belief that Sasol’s turnaround may have staying power beyond oil price fluctuations.
Conclusion: Temporary Spike or Sustained Breakout?
Sasol’s share price movement reflects both tactical geopolitical developments and a deeper reassessment of its long-term prospects. As oil remains volatile, the company’s improved fundamentals, technical breakout, and strategic pivot suggest that this could be more than just a short-term reaction.
If global tensions ease and energy prices stabilize, Sasol may face short-term pullbacks—but with rising reserves, institutional support, and a more coherent emissions roadmap, the stock appears poised for continued upside.
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