ENI CEO Claudio Descalzi speaks during Abu Dhabi International Progressive Energy Congress (ADIPEC), in Abu Dhabi, United Arab Emirates, October 2, 2023. REUTERS/Amr Alfiky/File Photo Purchase Licensing Rights, opens new tab
ABU DHABI, Nov 4 (Reuters) – 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.
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% 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% 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.
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Reporting by Alexander Cornwell, Maha El Dahan and Yousef Saba Writing by Ron Bousso and Francesca Landini Editing by David Goodman and Emelia Sithole-Matarise
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Yousef covers Middle East energy out of Dubai, paying close attention to Gulf state oil giants, their roles in the ambitious region’s transformational plans and the shift to green energy. He previously covered Gulf financial and economic news, with a focus on the fast-growing capital markets there. He joined Reuters in 2018 in Cairo, where he covered Egypt and Sudan, including its uprising. He previously had stints at a local paper in Cairo and in D.C. as an intern at Politico during the 2016 U.S. presidential election.
Maha has been working as a Reuters journalist for over 15 years covering stories across the Middle East from Egypt, the Gulf, Yemen, Iraq, Syria, Lebanon and Jordan. She is currently Gulf Bureau Chief based in Dubai and continues to cover energy and OPEC policy. In her previous roles, Maha has overseen Lebanon, Syria and Jordan coverage as Bureau Chief based in Beirut and managed the energy and commodities file across the Middle East. Maha began her career with Reuters in Cairo.