Eni CEO Warns Oil Prices Could Surpass $100 by 2027 Amid Middle East Tensions
In an interview with Italy’s Il Sole 24 Ore published on Saturday, Eni SpA chief executive Claudio Descalzi warned that global crude oil prices could break above the recent $80‑$100 per barrel trading range, potentially exceeding $100 a barrel in the first quarter of 2027 if the conflict in the Middle East persists. He explained that emergency releases from strategic oil stockpiles have so far prevented a sharper price surge, but such releases cannot continue indefinitely because global reserves are finite.
Descalzi highlighted that global oil inventories have been on a declining trajectory, with recent months seeing accelerated stock draws as supply disruptions linked to the Iran‑U.S. confrontation intensified. He cautioned that a sustained reduction in inventories would leave the market increasingly exposed to further geopolitical shocks, thereby raising inflationary pressures and weighing on global energy demand.
Oil market movements reflected heightened risk premiums: Brent Oil Futures settled at approximately $76 a barrel, marking a 5.4% gain for the week, while West Texas Intermediate (WTI) Futures rose to about $71.40 a barrel, up roughly 4% on a weekly basis. Both benchmarks retreated on Friday after investors bet that the latest flare‑up would remain contained and would not significantly disrupt Middle East oil supplies. The price gains were underpinned by renewed U.S.–Iran hostilities and attacks on shipping in the Strait of Hormuz, which kept a geopolitical risk premium embedded in the market.
Regarding energy security, Descalzi argued that the longer‑term solution lies in diversifying both crude suppliers and transportation routes rather than relying heavily on vulnerable maritime chokepoints. He urged governments to deepen energy ties with producers in North Africa, sub‑Saharan Africa, Latin America, and Southeast Asia to reduce dependence on politically sensitive shipping lanes.
Descalzi also noted that Eni itself has limited direct exposure to the Middle East, as most of its upstream production is located in Africa and Latin America, rendering the company relatively insulated from regional disruptions. Additionally, he pointed out that the rapid expansion of artificial intelligence and data centres is driving a sharp increase in electricity demand, adding urgency to efforts aimed at securing reliable and diversified energy supplies.