Oil prices could hit USD 100/bbl in 18 months on post-corona rebound -Naguib
Oil prices could hit USD 100/bbl in 18 months on post-corona rebound -Naguib: Global oil prices could hit USD 100/bbl within 18 months because a pick up in demand when the covid-19 pandemic subsides will be met with a supply shortage, Naguib Sawiris said in an interview with CNBC. The recent Saudi-Russia price war, which saw Riyadh ramp up production to record highs in spite of plunging demand, was a “calculated” effort to shut down competition from the US shale industry, says the b’naire. “I think they knew [prices would plunge] and they still wanted to do it because, by killing a competitor, the price will rise beyond USD 50-60. So I actually believe that 18 months from now oil will hit USD 100,” he said.
The distress investor locked inside Naguib likes the collapsing aviation, tourism sectors: Sawiris said that he would buy into airlines and sees openings in tourism, despite the sectors being two of the worst-hit by the pandemic. “You can go and buy an airline today for USD 1 if you are assuming the bulk of the debt,” he said. This comes just days after famed investor Warren Buffett liquidated his holdings of airline stocks, causing shares to tank.