Leon Black of Apollo Global says oil to stabilize at $55-$60

Leon Black, Chief Executive Officer of New York-based Apollo Global Management LLC, said he expects oil prices to stabilize between $55 to $60 a barrel in the near term.

Speaking in Riyadh at the Future Investment Initiative (FII) on Wednesday, Black said Apollo has handled the oil price volatility opportunistically. He added that volatility has been limited in financial markets.

“We are living in a world with a lot of geopolitical volatility, but it’s absent from financial markets,” he added.

Saudi Finance Minister Mohammed Al-Jadaan also said global markets need healthy volatility. 

"Without volatility, we don't make money. It's unusual volatility that regulators like us try to avoid," he said. 

As the Kingdom prepares its budget for 2018, Al-Jadaan said that experts suggest oil prices will rise a little or stabilize.

Their comments came a day after Saudi energy minister Khalid Al-Falih— who was speaking at the same conference— said that the Organization of Petroleum Exporting Countries (OPEC) would do what it takes to reduce fuel stockpiles.

OPEC is scheduled to meet next month to discuss extending output cuts that are part of a deal set to end in March 2018. 

Apollo Global currently has about $232 billion in assets under management. Black, whose net worth is around $6.5 billion, joined over 2,000 global decision makers and investors in Riyadh for the FII this week, the first initiative of its kind in Saudi Arabia.

The Kingdom plans to hold the event each year as it moves forward with its efforts to diversify its economy, create more jobs, and continue building its infrastructure. 

Write to Reem Abdellatif at reem.a@argaam.com