Oil should be at $52 per barrel says Emirates Tim Clark | CNBC

Airline fuel is overpriced, and the underlying cost of oil should sit around $52 per barrel, Tim Clark, President of Emirates told CNBC Friday.

“I am one of these people that says it is hugely overpriced. If you are at $77 or $83 dollars (per barrel) it should be at $52. That’s where it needs to be,” Clark said in an interview with CNBC’s Joumanna Bercetche on the side-lines of The Aviation Festival in London.

“Those people, those countries, those entities that say they can’t make money on $52, they need to be doing something else,” he added.

The oil price has risen about 20 percent in 2018, and on Friday morning, Brent crude futures traded at around $76.48. U.S. West Texas Intermediate (WTI) crude futures sat at $67.76.

Clark added that as spot prices for oil were now roughly matching the futures price, the market had sensed the oil price was unlikely to rise further from this point.

“I think fuel is now capped out. The forward curve is flat,” he said before adding “There’s a certain amount of flakiness going forward that fuel will rise above where it is today. That’s my view,” Clark said.

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Oil should be at $52 per barrel says Emirates Tim Clark.