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Eni CEO Warns Oil Could Surpass $100 by 2027 Amid Middle East Tensions
Crude oil prices could break above the $100 per barrel threshold by the first quarter of 2027 if geopolitical conflicts in the Middle East persist, according to Claudio Descalzi, the CEO of Italian energy major Eni SpA. The warning highlights growing risks of inflation and a potential drag on global energy demand.
Dwindling Stockpiles and Supply Risks
In an interview with Italy's *Il Sole 24 Ore*, Descalzi stated that emergency releases from strategic oil stockpiles have so far capped prices, but he cautioned that this is not a sustainable solution. He noted that global reserves are finite and that inventories have been declining as supply disruptions linked to the conflict have intensified.
A sustained reduction in global inventories would leave the market increasingly exposed to further geopolitical shocks, Descalzi warned. This vulnerability is compounded by rising electricity demand driven by the rapid expansion of artificial intelligence and data centers, which adds urgency to securing reliable energy supplies.
A Call for Energy Diversification
Descalzi argued that the long-term solution to market instability is to improve energy security by diversifying both suppliers and transportation routes. He urged governments to reduce their reliance on politically sensitive maritime chokepoints by deepening energy ties with producers in other regions.
AdKey areas for diversification, according to the Eni chief, include:
- North Africa
- Sub-Saharan Africa
- Latin America
- Southeast Asia
Descalzi noted that Eni itself has limited direct exposure to the Middle East, with the majority of its upstream production located in Africa and Latin America, making the company relatively insulated from the region's disruptions.
Market Context
Oil prices have recently reflected the ongoing tensions, with a geopolitical risk premium embedded in the market due to hostilities and attacks on shipping. For the week, Brent crude futures settled around $76 a barrel, a gain of about 5.4%, while West Texas Intermediate (WTI) futures rose roughly 4% to about $71.40 a barrel, according to the source report.