Egypt to hedge oil supply during FY2023/2024, finance minister

Egypt, as one of the few countries, is actively involved in the oil derivatives market to secure its supplies, making it a substantial player in the market. Details of this have been disclosed by Egypt's Finance Minister, Mohamed Maait, in the fiscal year 2023/2024. The Minister, however, didn't reveal further details but mentioned that Egypt's total imports are about 150 million barrels of oil annually. Earlier this month, news surfaced about Egypt purchasing hedging contracts that cover about 35% of its expected oil imports for fiscal year 2023/2024. This action is to guard against the risks of global oil prices increasing. The contracts secure crude purchases at around $75-80 per barrel. The government previously estimated a price of $85 per barrel, expecting Egypt to import around 100 million barrels during 2023. Brent crude's price surged more than 20 percent since the end of June due to the announcement of production cuts by OPEC+ and the rising demand in Asia. Egypt is also working strategically towards positioning itself as a regional energy hub, accelerating efforts to increase its petroleum production and planning key investments. The country's Petroleum and Mineral Resources Minister, Tarek El Molla, revealed that the target investments in the petroleum sector are expected to reach $8.5-9 billion for FY2023/2024.