Eni Chief Executive Claudio Descalzi said the global oil market could break out of its current $80 to $100 per barrel range by the first quarter of 2027 if conflict in the Middle East continues, according to an interview published Saturday by Il Sole 24 Ore and cited by Odaily. He said such a move would raise inflation and cut energy demand.
Descalzi said releases from strategic reserves have so far helped keep crude prices roughly within that range, but warned that the approach is becoming riskier because global reserves are finite. He described diversification of supply sources and transport routes as the long-term answer for stronger energy security.
He also said global oil inventories have been falling because of disruptions tied to the Iran war that broke out in late February. According to his figures, inventories dropped by 3.8 million barrels per day on average, with the decline accelerating to 4.6 million barrels per day in May. Descalzi said countries should focus more on producers in North Africa and sub-Saharan Africa, Latin America, and Southeast Asia, while reducing reliance on controlled maritime chokepoints.
Eni Chief Executive Claudio Descalzi said the global oil market could move beyond its current $80 to $100 a barrel range by the first quarter of 2027 if conflict in the Middle East continues, according to an interview published Saturday by Il Sole 24 Ore and cited by Odaily.
He said such a shift would lift inflation and reduce energy demand.
Strategic reserve releases face rising limits
Descalzi said releases from strategic reserves have so far helped keep crude prices broadly within that range. Still, he warned that the strategy is facing growing risk because global reserves are limited.
"The long-term solution is to strengthen energy security through diversification of supply sources and routes," he said.
Inventory declines accelerated in May
Descalzi said global oil inventories have been falling because of disruptions tied to the Iran war that broke out in late February. He said inventories fell by an average of 3.8 million barrels per day, and the drop accelerated to 4.6 million barrels per day in May.
He added that countries should pay more attention to producers in North Africa and sub-Saharan Africa, Latin America, and Southeast Asia, while reducing dependence on controlled sea routes.
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