Back to the complete issue
Thursday, 7 May 2020

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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.