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

Global crude oil prices could break above $100 per barrel by the first quarter of 2027 if ongoing conflict in the Middle East persists, according to Eni SpA (BIT:ENI) CEO Claudio Descalzi. In an interview with Italian newspaper *Il Sole 24 Ore* published Saturday, Descalzi warned that such a price spike would heighten inflation risks and weigh on global energy demand.

Depleting Stockpiles and Market Vulnerability

Descalzi noted that emergency releases from strategic oil stockpiles have so far helped prevent a more significant price surge. However, he cautioned that this is not a sustainable solution, as global reserves are finite and have been declining amid supply disruptions linked to the conflict.

A sustained reduction in inventories leaves the oil market increasingly exposed to further geopolitical shocks. The Eni chief stated that stock draws have accelerated in recent months, tightening the supply-demand balance and increasing price volatility.

Market Reaction and Long-Term Strategy

Oil prices ended last week with significant gains, reflecting a geopolitical risk premium embedded in the market due to U.S.-Iran hostilities and attacks on shipping in the Strait of Hormuz.

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• Brent crude futures settled the week around $76 a barrel, a gain of about 5.4%.
• West Texas Intermediate (WTI) futures rose roughly 4% for the week to about $71.40 a barrel.

Both benchmarks retreated on Friday as some investors bet that the latest flare-up would not cause a major disruption to Middle East oil supplies. Descalzi argued the long-term solution is to improve energy security by diversifying suppliers away from politically sensitive maritime chokepoints, suggesting deeper ties with producers in Africa, Latin America, and Southeast Asia.

New Demand Pressures

Adding to supply-side concerns, Descalzi highlighted a new source of significant energy consumption: the rapid expansion of artificial intelligence and data centers. He said this trend is driving a sharp increase in electricity demand, which adds urgency to efforts to secure reliable and diversified energy sources for the future.