Opec actions increasing volatility and hampering new investment in oil and gas, Eni CEO says
Claudio Descalzi expects high volatility in the energy markets experienced in recent years to extend into 2025
OPEC+ oil supply cuts and recent efforts to unwind them have increased volatility in energy markets and hampered investment in new production, the CEO of Italian energy company Eni said on Monday (Nov 4).
Speaking at an industry event in Abu Dhabi, Claudio Descalzi said he expected high volatility in the energy markets experienced in recent years to extend into 2025.
Eight members of Opec+, which groups the Organization of the Petroleum Exporting Countries plus Russia and other allies, agreed on Sunday to delay a planned December oil output increase by one month due to weak demand in China and rising supplies.
Oil prices were up by over 2.5 per cent by 1030 GMT on Monday.
“As soon as (Opec) say we’re going to release some production, the price went down immediately. Now they say we postpone until the end of the year, and that has made a big impact on the market… the volatile situation is not good,” Descalzi said.
“Everybody says we need energy, but with this kind of volatile situation, and this volatility is not really helping investment” in new oil and gas production, he said.
BP CEO Murray Auchincloss told the panel that tensions in the Middle East topped the risks facing energy markets.
Escalating tensions between Israel and Iran since last October have stoked concerns over supply disruptions in the Gulf, which produces and exports around 20 per cent of the world’s oil and gas, pushing oil prices higher.
Auchincloss also said that the world would require a lot of new investment in oil and gas in order to maintain supplies, regardless of a possible settling of demand in the coming years. REUTERS
