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Eni CEO: Oil Could Top $100 by 2027 on Persistent Middle East Tensions
Summary
Claudio Descalzi, CEO of Italian energy major Eni, warned that crude prices could break above $100 per barrel by early 2027 if regional conflicts continue, citing the limits of strategic reserve releases and declining global inventories.
Claudio Descalzi, the CEO of Italian energy major Eni SpA, has warned that global crude oil prices could surpass $100 per barrel by the first quarter of 2027 if geopolitical tensions in the Middle East persist. The executive cautioned that such a price spike would heighten inflation risks and could negatively impact global energy demand.
In an interview with Italy's *Il Sole 24 Ore* published Saturday, Descalzi stated that emergency releases from strategic petroleum reserves have so far capped prices, but this is not a sustainable long-term solution as global stockpiles are finite.
Market Vulnerabilities and Price Action
Descalzi noted that global oil inventories have been steadily declining as supply disruptions linked to the conflict involving Iran have intensified. He warned that sustained inventory draws leave the market increasingly exposed to further geopolitical shocks, creating a more fragile supply-demand balance.
His comments come as oil markets ended a volatile week with solid gains, largely due to a geopolitical risk premium. Renewed hostilities between the U.S. and Iran, along with attacks on shipping in the Strait of Hormuz, supported prices.
- Brent crude futures settled the week around $76 a barrel, a gain of approximately 5.4%.
- West Texas Intermediate (WTI) futures rose about 4% for the week, settling near $71.40 a barrel.
AdBoth benchmarks retreated on Friday, however, as some investors bet that the latest flare-up would not cause a significant, immediate disruption to Middle East oil supplies.
A Call for Diversification
According to Descalzi, the long-term solution to price volatility is enhanced energy security through diversification. He urged governments to reduce their reliance on politically sensitive maritime chokepoints by strengthening energy relationships with producers in North Africa, sub-Saharan Africa, Latin America, and Southeast Asia.
The Eni chief also highlighted that surging electricity consumption, driven by the rapid expansion of artificial intelligence and data centers, adds urgency to the need for reliable and varied energy sources. He noted that Eni's own upstream production is primarily located in Africa and Latin America, providing the company with relative insulation from direct Middle East disruptions.