Svmuu News: Claudio Descalzi, CEO of Italy’s state-controlled Eni Group, said 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, driving up inflation and reducing energy demand.
In an interview published Saturday in *Il Sole 24 Ore*, Descalzi said that the release of strategic reserves has so far helped keep crude oil prices roughly within that range, but this strategy faces growing 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 global oil inventories have been declining by an average of 3.8 million barrels per day due to disruptions related to the war in Iran that erupted in late February, with the rate accelerating to an average of 4.6 million barrels per day in May. He said countries should focus on producers in North and Sub-Saharan Africa, Latin America, and Southeast Asia, while reducing their reliance on controlled maritime channels. (Jin Shi)