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

The CEO of Italian energy major Eni SpA, Claudio Descalzi, has warned that global crude oil prices could break above $100 per barrel by the first quarter of 2027 if current geopolitical conflicts in the Middle East persist. The forecast highlights growing risks of inflation and a potential drag on global energy demand.

Geopolitical Risks and Dwindling Stockpiles

In an interview with Italy's *Il Sole 24 Ore* published Saturday, Descalzi stated that emergency releases from strategic oil stockpiles have so far muted a more severe price spike. 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, Descalzi warned. He also noted that the rapid expansion of artificial intelligence and data centers is driving a significant increase in electricity demand, adding pressure to secure reliable energy supplies.

A Call for Energy Diversification

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Descalzi argued that the long-term solution to market volatility is to improve energy security by diversifying both suppliers and transportation routes. He urged governments to deepen energy relationships with producers in North Africa, sub-Saharan Africa, Latin America, and Southeast Asia to reduce dependence on politically sensitive maritime chokepoints.

The Eni chief noted that his own company has limited direct exposure to the Middle East, with the majority of its upstream production located in Africa and Latin America. This positioning provides Eni with relative insulation from regional disruptions.

Market Context

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