Italian oil major Eni has forecast a rebound in Brent Crude prices to $80 per barrel in the fourth quarter, according to Chief Executive Officer Claudio Descalzi.
Speaking at the Energy Summit conference organised by Il Sole 24 Ore, Descalzi noted, “We expect oil prices to stabilise at around $80 per barrel, while natural gas prices in Italy will likely reach 30 euros per megawatt hour.”
Descalzi cited extreme volatility in oil prices, attributing it to supply chain constraints failing to meet demand of approximately 104 million barrels per day. Despite production potential, inadequate investments in the upstream sector and prolonged “time to market” timelines hinder growth.
Brent Crude prices traded at $73.94 per barrel early Wednesday, down 1.6%.
Major investment banks and analysts concur with Eni’s forecast, predicting Brent Crude prices to average $80 per barrel for the remainder of 2024. Macquarie revised its forecast down by $2 to $80 per barrel, citing weaker demand.
However, Goldman Sachs reduced its expected Brent price range by $5 to $70-$85 per barrel, citing weaker Chinese oil demand, high inventories, and rising US shale production.
Morgan Stanley also cut its forecast, predicting Brent Crude to average $75 per barrel in Q4, citing rising demand-side headwinds.