According to Eni CEO Claudio Descalzi, when is the oil market expected to break out of its current $80–$100 price range, and what key factor could trigger this shift?

Eni CEO Claudio Descalzi stated that the global oil market will break out of its current $80–$100 per barrel range by the first quarter of 2027 at the latest if the Middle East conflict continues. He attributed this potential breakout to mounting pressure from declining global oil stockpiles—falling on average by 3.8 million barrels per day (bpd), and accelerating to 4.6 million bpd in May—driven by disruptions linked to the Iran war that began at the end of February. Descalzi emphasized that the ongoing release of strategic stockpiles has so far helped contain prices within the range, but this strategy carries growing risks due to the finite nature of global reserves.

What long-term solution does Descalzi propose to enhance global energy security, and which regions does he identify as priority alternatives to Middle East supply?

Descalzi identified 'greater energy security through diversification of supply sources and routes' as the long-term solution. Specifically, he urged countries to focus on producers in North and sub-Saharan Africa, Latin America, and Southeast Asia, while reducing dependence on controlled maritime passages. This recommendation aligns with Eni’s own upstream strategy, as the company has limited exposure to the Middle East and derives most of its production from Africa and Latin America. He also highlighted the added urgency of securing energy supply due to rising power demand from artificial intelligence technologies and the rapid expansion of data centres.

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

Jul 11, 2026

Eni CEO Claudio Descalzi predicts oil prices will exceed the $80-$100 range by early 2027 if Middle East conflicts persist, citing declining global stockpiles. He urges supply diversification amid rising energy demand from AI data centers.

reuters

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