Eni CEO Claudio Descalzi predicted on Monday that the price of a barrel of oil will reach $100 due to lower investment by energy companies at a time when demand is improving strongly.
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Descalzi said during his participation in the energy exhibition “ADIPEC 2021”, which will be held in the UAE capital, Abu Dhabi, from 15 to 18 November.
The rise in oil prices to these record levels will be temporary for a short period.
He pointed out that oil consumption will shrink as the main result of the rise in energy prices.
He believed that the oil and gas sector had not witnessed sufficient investments in the past years. “Eni is investing about 50 percent.
then it was investing in 2013 amid the supply gap and there is a gap between supply and demand.”
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He predicted that it will take some time before oil companies start investing again.
“Global oil consumption is approaching 100 million barrels per day, which is close to record high levels.”
During the same event, UAE Energy Minister Suhail Al Mazrouei said:
Fundamentals do not suggest that oil prices will reach $100 next year as there will be an oversupply.
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The minister expected that the oil markets would witness an oversupply during the first quarter of 2022, and it is likely that a balance in the market would be achieved during the next year.
