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

The CEO of Italian energy major Eni, Claudio Descalzi, has warned that global crude oil prices could surge past $100 per barrel by the first quarter of 2027 if geopolitical tensions in the Middle East are not resolved. In an interview with Italian newspaper *Il Sole 24 Ore* published Saturday, Descalzi stated that such a price spike would heighten inflation risks and negatively impact global energy demand.

Depleting Buffers and Market Risks

Descalzi noted that emergency releases from strategic petroleum reserves have so far helped contain prices, but he cautioned this is not a sustainable solution as global stockpiles are finite. He explained that global oil inventories have been declining amid supply disruptions linked to the ongoing conflict, leaving the market increasingly exposed to further shocks.

A sustained reduction in inventories, he warned, would remove a critical buffer against future supply disruptions. This vulnerability is compounded by growing electricity needs driven by the rapid expansion of artificial intelligence and data centers, which adds urgency to securing reliable energy sources.

A Call for Diversification

To mitigate these risks, Descalzi argued that the long-term solution is to improve energy security by diversifying both suppliers and transportation routes. He stressed the importance of reducing reliance on vulnerable maritime chokepoints, which have recently been the site of attacks.

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The Eni chief urged governments to deepen energy relationships with producers in regions like North Africa, sub-Saharan Africa, Latin America, and Southeast Asia. He noted that Eni itself has limited direct exposure to Middle East instability, as most of its production is located in Africa and Latin America.

Market Context

Descalzi's comments come as oil markets remain sensitive to geopolitical developments. Last week, prices saw significant gains due to renewed hostilities between the U.S. and Iran and attacks on shipping in the Strait of Hormuz.

• 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.

Both benchmarks pulled back on Friday as investors speculated that the latest flare-up would not cause a significant disruption to Middle East oil supplies, though a geopolitical risk premium remains embedded in prices.