{"id":680912,"date":"2026-01-12T00:00:00","date_gmt":"2026-01-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=680912"},"modified":"2026-01-12T13:46:03","modified_gmt":"2026-01-12T13:46:03","slug":"egypt-pivots-to-direct-supply-deals-as-oil-hedges-lose-their-luster","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/01\/12\/egypt-pivots-to-direct-supply-deals-as-oil-hedges-lose-their-luster\/","title":{"rendered":"Egypt pivots to direct supply deals as oil hedges lose their luster"},"content":{"rendered":"

Good afternoon, friends. We hope you\u2019re surviving the dusty weather. <\/strong>On the docket today: Egypt may walk away from its oil hedging program, gold hits a record USD 4.6k on geopolitical jitters, and we explore how Cairo\u2019s independent theater scene is (re)turning art into a viable business. Let\u2019s dive in.<\/p>\n

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THE BIG STORY TODAY-<\/p>\n

? Egypt is thinking about walking away from its oil price hedging program starting<\/strong> next fiscal year<\/strong>, a senior government official tells EnterpriseAM. The move marks a significant shift in how the state manages its exposure to global energy markets, moving away from expensive bank-led ins. contracts in favor of direct supply agreements.<\/p>\n

For years, Egypt has tapped international banks to protect against spikes in oil prices,<\/strong> but now, this ins. premium is no longer worth it<\/strong>, our source told us. Last fiscal year, the Finance Ministry paid some USD 84.5 mn to hedge 55 mn barrels, but global prices stayed below the contract\u2019s strike price, and looking ahead, the consensus is that oil prices will continue to fall \u2014 with Brent crude averaging USD 61.27 a barrel in 2026, according to a recent Reuters poll<\/a>.<\/p>\n

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THE BIG STORY ABROAD-<\/p>\n

? Gold <\/strong>has reached an all-time high as spot gold jumped 2% to USD 4.6k per ounce for <\/strong>the first time ever.<\/strong> This follows a surge in geopolitical tensions, particularly as protests in Iran intensify \u2014 around 500 deaths and over 10k arrests reported \u2014 and US President Donald Trump threatens military intervention. A big policy risk is also at play following an investigation into the US Federal Reserve and its Chair Jerome Powell, whom Trump threatened with criminal indictment over a USD 2.5 bn renovation to the central bank\u2019s headquarters in Washington, DC, and Powell\u2019s related testimony to Congress.<\/p>\n

^^Read more on: Reuters<\/a> and CNBC here<\/a> and here<\/a>.<\/p>\n

ALSO-<\/strong> Trump has threatened to sideline Exxon Mobil from Venezuela\u2019s energy market, stating that he didn\u2019t like the CEO\u2019s comment that Venezuela is \u201cuninvestable\u201d after Trump encouraged oil companies to re-enter the South American country. Oil prices are at risk of doubling as the Strait of Hormuz, one of the world\u2019s most critical energy chokepoints, comes into focus amid possible US military intervention and a consequent move by Iran to disrupt the waterway. The Strait of Hormuz saw the transit of around 13 mn barrels daily in 2025, accounting for 31% of global seaborne crude flows.<\/p>\n

^^Read more on: Bloomberg<\/a> and CNBC<\/a>.<\/p>\n

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