Eni CEO warns Middle East strife could drive oil above $100 by 2027

Eni CEO Claudio Descalzi warned that continued tensions in the Middle East could push global oil prices beyond the current $80–$100 per barrel range by the first quarter of 2027. He said withdrawals from global oil inventories have so far kept crude within that band but carry rising risks as reserves decline — global stocks are being drawn down by about 3.8 million barrels per day, accelerating to 4.6 million bpd in May after disruptions linked to the war in Iran that began in late February. Oil prices fell on Friday as hopes grew that shipping through the Strait of Hormuz might resume, but markets remain volatile amid geopolitical uncertainty and the U.S.-Iran conflict's impact on supply routes.

Descalzi urged bolstering energy security through diversified supply sources and transport routes and called for stronger cooperation with producers in North Africa, sub-Saharan Africa, Latin America and Southeast Asia. He noted Eni’s limited exposure to the Middle East, with most of its exploration and production activity in Africa and Latin America, and highlighted rising electricity demand from AI growth and expanding data centers as an additional pressure on future energy needs. as reported by SANA