Naguib Sawiris: Oil will hit $100 in 18 months
The oil price will hit $100 per barrel in around 18 months. That’s what Orascom Investment Holding Chairman and CEO Naguib Sawiris believes, a new CNBC television interview has revealed. “I actually believe that in, let’s say, 18 months from now the oil will hit $100,” Sawiris told CNBC via phone in the interview, which was published on CNBC’s website on May 6.
Rigzone cites him in its article Oil Will Hit $100 in Around 18 Months: “The shale industry will vanish for at least one year … and the start-up is going to be difficult because banks are going to be very reluctant to finance them back because they know that they’re very vulnerable … even [in] traditional oil many of the U.S. facilities have closed down.” “The world is growing anyhow, even with this recession, so suddenly when the demand is still there and is coming … and they want oil, it will not be there because most of the people are shut down. So, the offering will be less than the need … and then the price will go back very high,” Sawiris continued.
According to the U.S. Energy Information Administration’s latest short-term energy outlook, which was released on April 7, Brent crude and WTI will average $45.62 and $41.12, respectively, in 2021. Standard Chartered currently believes Brent and WTI will average $44 and $41, respectively, next year.
Without giving exact figures, Rystad Energy told Rigzone on May 6 that Brent and WTI will strengthen “a bit” in 2021 from where it will average this year and then rise “quite a lot” in 2022. “Demand will be back up, but supply will not be where it normally would due to the shut-downs and the lack of investments and drilling,” A Rystad spokesperson said.
At the time of writing, Brent was trading at around $29 per barrel and WTI was trading at around $24 per barrel. Orascom Investment Holding is a holding company investing in industries that are “critical to shaping the future”, according to the company’s website. Sawiris, who is also the chairman of La Mancha Holding, a private natural resource investment vehicle of the Sawiris family group, has a net worth of $3 billion, as of May 7, according to Forbes.