Eni CEO Warns Oil Could Top $100 by 2027 on Persistent Middle East Conflict

The CEO of Italian energy major Eni, Claudio Descalzi, has warned that persistent conflict in the Middle East could push global crude oil prices above $100 per barrel by the first quarter of 2027. The forecast highlights growing risks to energy markets from sustained geopolitical instability and dwindling global inventories.

Depleting Stockpiles Drive Price Risk

In an interview with Italy's *Il Sole 24 Ore* published Saturday, Descalzi stated that prices could break out of their recent $80-$100 per barrel trading range. He cautioned that while emergency releases from strategic oil stockpiles have so far prevented a sharper price rise, such measures are not a sustainable solution because global reserves are finite.

According to the Eni chief, global oil inventories have been declining as supply disruptions linked to the conflict involving Iran have intensified. He warned that a sustained reduction in these stockpiles would leave the market increasingly exposed to further geopolitical shocks.

Geopolitical Tensions and Market Reaction

The warning comes as oil markets continue to price in a geopolitical risk premium amid U.S.-Iran hostilities and attacks on shipping in the Strait of Hormuz. Last week, oil prices posted solid gains despite easing from their peaks, with Brent crude futures settling around $76 a barrel and West Texas Intermediate (WTI) futures near $71.40.

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Both benchmarks retreated on Friday as investors bet that the latest regional flare-up would remain contained and not significantly disrupt oil supplies from the Middle East. Descalzi's comments, however, point to a more fragile long-term balance if the conflict endures.

Call for Energy Diversification

Descalzi argued that the long-term answer lies in improving energy security by diversifying both crude suppliers and transportation routes to reduce reliance on vulnerable maritime chokepoints. He suggested governments should deepen energy ties with producers in North Africa, sub-Saharan Africa, Latin America, and Southeast Asia.

The CEO also noted that the rapid expansion of artificial intelligence and data centers is driving a sharp increase in electricity demand, adding urgency to efforts to secure reliable and diversified energy supplies. He added that Eni itself has limited direct exposure to the Middle East, with most of its production located in Africa and Latin America.