ENI CEO: If Middle East Conflict Persists, Oil Market May Break Out of Current Range by Early 2027

Odaily reported that Claudio Descalzi, CEO of Italian state-controlled energy giant Eni, stated that if the conflict in the Middle East continues, the global oil market will break out of its current range of approximately $80 to $100 per barrel by the first quarter of 2027 at the latest, pushing up inflation and reducing energy demand.

In an interview published by Il Sole 24 Ore on Saturday, Descalzi said that the release of strategic reserves has so far helped keep crude oil prices roughly within this range. However, this strategy is facing increasing risks as global reserves are limited. "The long-term solution is to enhance energy security through the diversification of supply sources and routes," he said.

Descalzi noted that due to disruptions related to the outbreak of conflict involving Iran at the end of February, global oil inventories have fallen by an average of 3.8 million barrels per day, accelerating to an average of 4.6 million barrels per day in May. He said countries should focus on producers in North Africa and Sub-Saharan Africa, Latin America, and Southeast Asia, while reducing dependence on controlled maritime chokepoints. (Jin Shi)