DUBAI: The price of Brent crude is forecast to reach $60 per barrel by analysts at Citi, the big US bank, as global economic demand recovers and high stock levels are used up.
Max Layton, Citi’s head of regional commodity research, said that the $60 figure was made more likely by a “collapse” in capital expenditure in the oil industry. “No new oil projects are incentivized at $40,” he told the bank’s global media summit.
The Citi forecast is among the most optimistic for oil prices as they recover from the most volatile period in the industry’s history. Brent began the year above $60, but fell below $20 in early April. It was trading Thursday above $42 per barrel.
Layton also ruled out the possibility of a new “price war” in oil markets while prices remained around present levels. “At current price levels and with the future structure of the industry we are not anticipating further price wars.
“But at $55-$60 that could be the case. Higher prices increase the possibility of Russia breaking away from the Opec+ deal.” Citi’s longer term forecast for the oil price remained at the lower end of a range from $45-$60, he added.
Grant Carson, head of Citi’s business in several Central Asian countries, said that even with oil at $20 per barrel, Russia could cover its national budget for more than two years. Lower oil prices could speed diversification away from energy sector dependency, he added.
Atiq Rehman, head of Citi emerging markets, said that Gulf Cooperation Council countries had low debt-to-GDP ratios and high levels of sovereign wealth, and had the capacity to deal with the challenges presented by relatively low oil prices.
“They have big public sectors where the governments own a lot of assets,” he said.
Mike Corbat, Citigroup CEO, said the economic recovery from the pandemic lockdowns would be uneven, and would depend to a great extent on the response from governments. “There have been some truly extraordinary actions by financial authorities around the world, not least the US.”
He said that US financial markets had responded and were “encouraged by the resilience” of government policy.
Optimistic Citi predicts oil at $60 per barrel in 2021
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Optimistic Citi predicts oil at $60 per barrel in 2021
PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025
RIYADH: Saudi Arabia’s Public Investment Fund-backed AviLease achieved exceptional performance and sustainable business growth during 2025, supported by the strategic expansion of its global platform.
According to its financial results for 2025, AviLease recorded total revenues of $664 million, an annual increase of 19 percent, driven by disciplined growth in its asset portfolio and strong performance in aircraft remarketing amid sustained global demand for modern, fuel-efficient aircraft, the Saudi Press Agency reported.
Profit before tax doubled compared to the previous year, reaching $122 million. The year witnessed an expansion in AviLease’s portfolio, reaching 202 owned and managed aircraft, leased to over 50 airline companies in more than 30 countries.
The total value of the company’s assets stabilized at $9.3 billion. AviLease maintained a 100 percent fleet utilization rate, reflecting the resilience of its business model, the efficiency of its asset management, and the strength of its strategic relationships with airlines around the world.
AviLease concluded purchase agreements for aircraft from Airbus, including the A320neo family and A350F, and Boeing 737 aircraft, aiming to enhance its future asset portfolio with modern, fuel-efficient aircraft. This step will contribute to supporting future growth and meeting increasing customer demand for the latest aircraft, aligning with the Kingdom’s ambitions to become a leading global aviation hub.
AviLease strengthened its prestigious credit standing by obtaining a strong Baa2 credit ratings from Moody’s and BBB from Fitch, reflecting its financial solidity, managerial discipline, and efficiency in managing leverage. The company also successfully issued senior unsecured bonds worth $850 million last November under Regulation 144A/RegS. This issuance contributed to diversifying its funding sources and enhancing its financial flexibility.
Commenting on the results, AviLease CEO Edward O’Byrne said: “This exceptional performance reflects the quality of the company’s investment portfolio, the strength of its partnerships with airlines, and its strategic focus on responsibly deploying capital into highly sought-after, efficient, modern aircraft assets.”
He added: “As aviation markets continue to grow, AviLease is strategically positioned to continue its expansion plans and deliver sustainable long-term value for shareholders, contributing to the Kingdom’s ambitions.”
Throughout 2025, AviLease continued to play a pivotal role in the Kingdom’s growing aviation sector and contributed directly to the launch and scaling of the new national carrier, Riyadh Air, by completing a sale and leaseback transaction for a Boeing 787-9 aircraft, which thereby became the first aircraft to join the airline’s fleet.
AviLease also established a strategic partnership with Hassana Investment Co. This partnership aims to provide an opportunity for local and international investors to enter the aircraft financing asset class and benefit from AviLease’s technical expertise and operational capabilities to support partnership growth and enhance performance.
Hassana Investment Co. has agreed to acquire an initial portfolio of 10 modern aircraft from AviLease.
