Claudio Descalzi, Chief Executive Officer of Italian energy group Eni, has warned that 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, which will drive inflation higher and reduce energy demand, should the conflict in the Middle East continue.
In an interview with the newspaper Il Sole 24 Ore published on Saturday, he said that draws on inventories have helped keep crude prices largely within this range so far.
He added that the risks inherent in this strategy are mounting because global reserves are limited.
He said the long-term solution is to strengthen energy security by diversifying supply sources and transportation routes.
Descalzi noted that global oil stocks are declining by an average of 3.8 million barrels per day, with the rate of decline accelerating to 4.6 million barrels per day in May as a result of disruptions linked to the Iran war that broke out at the end of February.
He added that countries should focus on producers in North Africa, sub-Saharan Africa, Latin America, and Southeast Asia.