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

The global oil market will break out of its roughly $80-$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.

-Reuters