Eni CEO says oil market risks breaking out of current range by early 2027

MILAN: The global oil market will break out of its roughly USD 80-USD 100 range by the first quarter of 2027 at the latest, boosting inflation and reducing energy demand, if the Middle East conflict continues, Claudio Descalzi, the CEO of Italian state-controlled group Eni said. The release of stockpiles has helped to keep crude prices largely within that range so far, he said in an interview with Il Sole 24 Ore newspaper published on Saturday.

The strategy carries growing risks because global reserves are finite, he said.

“The long-term solution is greater energy security through diversification of supply sources and routes,” he said.

Descalzi said global oil stocks have fallen by an average 3.8 million barrels per day, accelerating to 4.6 million bpd in May, as a result of disruption linked to the Iran war that began at the end of February.

He said countries should focus on producers in North and sub-Saharan Africa, Latin America and Southeast Asia, while reducing dependence on controlled maritime passages.

Eni has limited exposure to the Middle East, while most of its upstream production is in Africa and Latin America.

Power demand generated by artificial intelligence technologies and the rapid expansion of data centres has increased the urgency of ensuring security of energy supply.