Oil Could Surpass $100 by 2027 Amid Geopolitical Tensions, Eni CEO Says

Crude oil prices could break above $100 per barrel by the first quarter of 2027 if ongoing conflicts in the Middle East persist, according to a warning from Eni SpA CEO Claudio Descalzi. The forecast highlights growing risks to global energy markets as geopolitical tensions weigh on supply and deplete strategic reserves.

In an interview with Italy's *Il Sole 24 Ore* published Saturday, Descalzi stated that while emergency releases from strategic oil stockpiles have so far prevented a sharper price spike, such measures are not a permanent solution. He cautioned that these reserves are finite and that global oil inventories have been declining as supply disruptions linked to the conflict have intensified.

Market Vulnerability and Long-Term Strategy

A sustained reduction in inventories would leave the market increasingly exposed to further geopolitical shocks, the Eni chief warned. The comments come as oil prices posted solid weekly gains, with Brent crude settling around $76 a barrel and West Texas Intermediate (WTI) near $71.40, reflecting a persistent geopolitical risk premium despite easing on Friday.

Descalzi argued that the long-term solution to price volatility is improved energy security through diversification. He urged governments to deepen energy ties with producers in regions outside the Middle East to reduce dependence on politically sensitive shipping routes.

Key areas for diversification he identified include:

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

Shifting Demand and Company Positioning

Adding to supply-side pressures, Descalzi noted that the rapid expansion of artificial intelligence and data centers is driving a sharp increase in electricity consumption. This trend adds urgency to efforts to secure reliable and diversified energy supplies for the future.

Descalzi also commented on Eni's own portfolio, stating the company has limited direct exposure to the Middle East. With most of its upstream production located in Africa and Latin America, the Italian major is relatively insulated from the direct impact of regional disruptions.