Latest News

OPEC actions increasing volatility and hindering new financial investment in oil and gas, Eni CEO states.

OPEC+ oil supply cuts and recent efforts to unwind them have increased volatility in energy markets and hampered financial investment in brand-new production, the CEO of Italian energy business Eni stated on Monday.

Speaking at an industry occasion in Abu Dhabi, Claudio Descalzi said he expected high volatility in the energy markets experienced in recent years to extend into 2025.

8 members of OPEC+, which groups the Organization of the Petroleum Exporting Countries plus Russia and other allies settled on Sunday to postpone a prepared 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) state we're going to launch some production, the cost went down immediately. Now they state we hold off up until completion of the year, which has actually made a huge impact on the market ... the unpredictable scenario is bad, Descalzi said.

Everybody says we need energy, however with this type of unpredictable scenario, and this volatility is not truly helping financial investment in brand-new oil and gas production, he said.

BP CEO Murray Auchincloss told the panel that tensions in the Middle East topped the risks dealing with energy markets.

Escalating stress in between Israel and Iran considering that last October have actually stoked concerns over supply interruptions in the Gulf, which produces and exports around 20% of the world's oil and gas, pressing oil rates higher.

Auchincloss likewise said that the world would require a lot of new financial investment in oil and gas in order to keep materials, regardless of a possible settling of demand in the coming years.

(source: Reuters)