Egypt signed oil hedging agreements with two banks

A senior government official told Reuters on Tuesday that Egypt has signed contracts with two global banks to hedge against fluctuations in global oil prices, Reuters reported in Cairo
, September 4.

Egypt estimated the average oil price at $67 per barrel in its full-year 2018-2019 budget, while the current price of Brent crude is $
79 per barrel.

"We have signed insurance contracts
with two international banks against global oil price fluctuations," the official, who spoke on condition of anonymity.
"But we haven't decided when insurance will start
.
" The official said, but he did not name the banks
.

In April, the UK Treasury estimated that a $1 per barrel increase in oil prices would have a negative impact of around £4 billion, equivalent to 0.
08%
of GDP.

The overall target deficit for 2018-2019 is £438,594 million (US$24.
5 billion), or 8.
4 per cent, compared to a target deficit of £431,081 million, or 9.
8 per cent
, for 2017-2018.