Eni CEO: Oil Could Surpass $100 by 2027 on Persistent Mideast Tensions

Crude oil prices could break above $100 per barrel by the first quarter of 2027 if ongoing conflict in the Middle East persists, according to Claudio Descalzi, the CEO of Italian energy firm Eni SpA. The forecast highlights growing risks of inflation and pressure on global energy demand should geopolitical tensions continue to strain supply.

Depleting Stockpiles and Supply Risks

In an interview with Italy's *Il Sole 24 Ore* published Saturday, Descalzi stated that emergency releases from strategic oil stockpiles have so far prevented a more significant price surge. However, he cautioned that this is not a sustainable solution, as global reserves are finite and have been declining amid supply disruptions linked to the conflict with Iran.

A sustained reduction in inventories leaves the market increasingly vulnerable to further geopolitical shocks, the CEO warned. This dynamic could push prices out of their recent $80-$100 per barrel trading range.

Market Reaction and Geopolitical Premium

Oil markets ended the week with solid gains, reflecting a geopolitical risk premium driven by renewed U.S.-Iran hostilities and attacks on shipping in the Strait of Hormuz. For the week, Brent crude futures rose about 5.4% to settle around $76 a barrel, while West Texas Intermediate (WTI) futures gained roughly 4% to about $71.40.

Despite the weekly advance, both benchmarks retreated on Friday as some investors bet that the latest flare-up would not cause a significant disruption to Middle East oil supplies. Still, the underlying tensions continue to support prices.

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Call for Diversification

Descalzi argued that the long-term solution to price volatility is enhanced energy security through diversification. He urged governments to reduce dependence on politically sensitive maritime chokepoints and deepen energy ties with producers in other regions.

Key strategies he identified include:

• Sourcing crude from a wider range of suppliers.
• Developing alternative transportation routes.
• Strengthening relationships with producers in North Africa, sub-Saharan Africa, Latin America, and Southeast Asia.

Descalzi noted that Eni has limited direct exposure to the Middle East, with most of its production located in Africa and Latin America. He also pointed to the rapid expansion of artificial intelligence and data centers as a new source of electricity demand, adding urgency to the need for reliable and diversified energy supplies.