Eni CEO: Oil Could Top $100 by 2027 if Mideast Tensions Persist

The CEO of Italian energy major Eni SpA, Claudio Descalzi, has warned that global crude oil prices could break above $100 per barrel by the first quarter of 2027 if geopolitical conflicts in the Middle East continue. The forecast highlights growing risks of inflation and a potential drag on global energy demand.

The Warning on Prices and Stockpiles

In an interview with Italy's *Il Sole 24 Ore* published Saturday, Descalzi stated that emergency releases from strategic oil stockpiles have so far capped prices, preventing a more severe spike. However, he cautioned that this is not a sustainable solution, as global reserves are finite and cannot be drawn upon indefinitely.

Descalzi noted that global oil inventories have been declining amid supply disruptions linked to the conflict involving Iran. A sustained reduction in these stockpiles would leave the market increasingly exposed to further geopolitical shocks, he warned.

Market Reacts to Geopolitical Risk

Oil markets ended the recent week with significant gains, reflecting a geopolitical risk premium embedded in prices due to renewed U.S.-Iran hostilities and attacks on shipping in the Strait of Hormuz. Despite a retreat on Friday, key benchmarks posted strong weekly performance:

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• Brent Oil Futures settled around $76 a barrel, a gain of about 5.4% for the week.
• Crude Oil WTI Futures rose roughly 4% to close near $71.40 a barrel.

The pullback on Friday suggested some investors believe the latest flare-up will remain contained and not cause a major disruption to Middle East oil supplies, though the underlying risk remains a key factor for traders.

A Call for Diversification

According to Descalzi, the long-term solution to price volatility is improved energy security through the diversification of both suppliers and transportation routes. He stressed the need to reduce reliance on politically sensitive maritime chokepoints.

The Eni chief advocated for strengthening energy relationships with producers in North Africa, sub-Saharan Africa, Latin America, and Southeast Asia. He also pointed to the rapid expansion of artificial intelligence and data centers as a new, significant driver of electricity demand, adding urgency to the need for reliable and diversified energy sources.