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

The CEO of Italian energy firm Eni SpA, Claudio Descalzi, has warned that global crude oil prices could surpass $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*, Descalzi stated that such a price surge would heighten inflation risks and weigh on global energy demand.

Dwindling Stockpiles and Supply Risks

Descalzi noted that emergency releases from strategic oil stockpiles have so far helped prevent a more severe price spike. However, he cautioned that these measures are not a sustainable long-term 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 accelerating stock draws in recent months leave the market increasingly exposed to further geopolitical shocks.

A Call for Energy Diversification

To improve long-term energy security, Descalzi advocated for diversifying both crude suppliers and transportation routes. He stressed the need to reduce reliance on vulnerable maritime chokepoints and suggested that governments should deepen energy ties with producers in:

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• North Africa
• Sub-Saharan Africa
• Latin America
• Southeast Asia

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

Market Context

Oil prices ended the previous week with solid gains, reflecting a geopolitical risk premium driven by renewed U.S.-Iran hostilities and attacks on shipping in the Strait of Hormuz. Brent crude futures settled the week up about 5.4% at around $76 a barrel, while West Texas Intermediate (WTI) futures gained roughly 4% to close near $71.40. Both benchmarks retreated on Friday as some investors bet the latest flare-up would not significantly disrupt regional oil supplies.