Claudio Descalzi, CEO of Italian energy giant Eni SpA, warned that global oil prices could break the recent trading range of $80–$100 per barrel as early as the first quarter of 2027.
He said this creates risks of rising inflation and will negatively impact global energy demand.
In an interview with the Italian newspaper Il Sole 24 Ore, published on Saturday, Descalzi noted that emergency releases from strategic petroleum reserves have so far curbed the sharp rise in prices, but cautioned that such measures cannot be continued indefinitely, as global reserves are limited. Meanwhile, oil prices ended the week with strong gains, despite a pullback from midweek highs: escalating US-Iranian tensions and attacks on ships in the Strait of Hormuz maintained a geopolitical premium in market prices.
Brent crude futures closed at around $76 per barrel, up about 5.4% for the week, while WTI crude futures rose about 4% to around $71.40, although both benchmarks corrected on Friday after investors bet that the latest escalation would remain localized and would not significantly disrupt oil supplies from the Middle East.
Descalzi stated that the long-term solution lies in strengthening energy security through diversification of both oil suppliers and shipping routes, rather than over-reliance on vulnerable maritime chokepoints. He also added that global oil inventories are declining as supply disruptions related to the Iran conflict intensify, with the pace of decline accelerating in recent months. He stated that the sustained decline in reserves will make the market increasingly vulnerable to further geopolitical upheavals.
The Eni CEO called on governments to deepen energy cooperation with producers in North Africa, sub-Saharan Africa, Latin America, and Southeast Asia to reduce dependence on politically sensitive shipping routes.
Eni itself has a limited direct presence in the Middle East: the bulk of its production is concentrated in Africa and Latin America, making the company relatively insulated from regional upheavals, Descalzi noted.
Furthermore, he noted that the rapid development of artificial intelligence and data centers is leading to a sharp increase in electricity consumption, adding urgency to efforts to ensure reliable and diversified energy supplies.