MAJOR oil companies are sounding the alarm as the resumption of USIran hostilities threatens to tighten global energy supplies and push prices higher.
Italian energy giant Eni warned that the situation could deteriorate in the short term amid declining global oil reserves and increased competition for energy resources, CEO Claudio Descalzi said in an interview with Il Sole 24 Ore.
“We all believed that the United States and Iran had found a solution to the conflict,” Descalzi said. “In reality, the resumption of the war is the chronicle of a foretold event.”
Key warnings from the industry:
• Global oil inventories have been declining at an average of 3.8 million barrels per day since the Gulf conflict began, accelerating to 4.6 million barrels per day in May
• Competition for energy resources is set to intensify as Asian buyers return to the market
• European gas storage (excluding Italy) stands at approximately 47 per cent, well below the 80 per cent target, requiring an additional 35 billion cubic metres of gas
• Descalzi noted that European countries will need to secure roughly 35 billion cubic metres of gas to refill storage facilities ahead of winter.
The comments come as the United States and Iran exchange strikes following the collapse of a 60-day ceasefire, with the Strait of Hormuz — through which roughly 20 per cent of global oil and LNG flows — now closed by Tehran. — SPUTNIK
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