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PRINCE ALWALEED: Oil Is Never Going Back To $100

Jan 12, 2015, 21:38 IST

Prince Alwaleed bin Talal, the eccentric Saudi billionaire once labeled the "Arabian Warren Buffet," says that oil will never again reach $100 a barrel.

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"The price of oil above $100 is artificial," he said. "It's not correct."

That's in an interview with Maria Bartiromo for USA Today, in which the business magnate blames oversupply and weak demand for the recent drop in oil prices.

He also predicted hard times ahead for America's shale oil and gas industries.

"No one knows for sure what price is the breaking point for shale," he said. "Wells have a higher production cost. And very clearly these will run out of business, or at least not be economical."

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The prince, who's made his billions on investments in Saudi Arabia, the United States, and around the world, openly disagrees with his government on most issues. But when it comes to the kingdom's recent oil policies, he said "the decision to not reduce production was prudent, smart and shrewd."

He said Saudi Arabia could not trust other oil-producing countries - OPEC or otherwise - to adhere to any sort of agreement to cut production, which is why they made that decision.

Read the full Q&A here.

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