The Egyptian billionaire founder of Orascom Telecom Holding Naguib Sawiris made the growth of oil prices up to $100 in 18 months. The businessman told about it on May 6 in an interview with CNBC.
A new deal to reduce production takes effect on May 1.
According to him, Saudi Arabia and Russia have started a price war to destroy the American shale industry. According to Saviris, the blow to it should have eventually caused a rapid increase in oil prices.
The entrepreneur believes that due to reduced demand for hydrocarbons, the price of oil would still fall even if the OPEC + deal was successful in early March, but not to such a low level. “So I really believe that in 18 months, oil will reach $100,” he said.
At the end of April, OPEC predicted an increase in prices for a barrel of oil to $40 by mid-2020.
In March, OPEC countries and other major oil exporters associated with it did not agree to cut production. The agreement was reached on April 12. It assumes a reduction in production by 9.7 million barrels per day in may and June. From July to the end of December, the reduction should reach 7.7 million barrels per day, and from January 2021 to the end of April 2022, 5.8 million barrels per day.
In December 2021, the transaction parameters may be revised.