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

The CEO of Italian energy major Eni, Claudio Descalzi, 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 persist. In an interview with Italy's *Il Sole 24 Ore* published Saturday, Descalzi said such a price surge would heighten inflation risks and weigh on global energy demand.

Inventory and Supply Risks

Descalzi cautioned that emergency releases from strategic oil stockpiles, which have so far helped contain prices, are not a sustainable solution because global reserves are finite. He noted that global oil inventories have been declining as supply disruptions linked to the conflict have intensified, leaving the market increasingly exposed to further shocks.

A sustained reduction in inventories would remove a critical buffer against future supply issues. The Eni chief's forecast suggests the market could move beyond its recent trading range of $80-$100 per barrel if current tensions are not resolved.

Call for Diversification

To improve long-term energy security, Descalzi urged a focus on diversifying both crude suppliers and transportation routes. He argued that governments should reduce dependence on politically sensitive maritime chokepoints by deepening energy ties with producers in North Africa, sub-Saharan Africa, Latin America, and Southeast Asia.

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Descalzi also highlighted a new source of pressure on energy markets: rising electricity consumption driven by the rapid expansion of artificial intelligence and data centers. He added that Eni itself has limited direct exposure to the Middle East, as most of its production is located in Africa and Latin America, making the company relatively insulated from the regional disruptions.

Market Context

Oil prices ended the week with solid gains, reflecting a geopolitical risk premium embedded in the market due to renewed U.S.-Iran hostilities and attacks on shipping in the Strait of Hormuz. Brent crude futures settled around $76 a barrel, a gain of about 5.4% for the week.

West Texas Intermediate (WTI) futures rose roughly 4% for the week to close at about $71.40 a barrel. However, both benchmarks retreated on Friday as some investors bet that the latest flare-up would remain contained and not cause a significant disruption to Middle East oil supplies.