Volatility in Energy Markets: OPEC+ Cuts and Global Impacts

The energy markets face high volatility due to OPEC+ supply cuts and global tensions. Claudio Descalzi of Eni highlights the challenge in investing amidst market fluctuations, while BP's Murray Auchincloss points to Middle East tensions affecting oil prices. A significant investment is necessary to stabilize future supplies.

OPEC+ oil supply cuts and attempts to reverse them have intensified energy market volatility, hindering investments in new production, stated Claudio Descalzi, CEO of Italy's Eni, at an Abu Dhabi industry event.

OPEC+ members, including Russia, decided to delay a planned December output increase by one month, citing weak Chinese demand and rising supplies. This decision led to a more than 2.5% rise in oil prices by Monday morning.

BP CEO Murray Auchincloss emphasized that Middle East tensions, particularly between Israel and Iran, are critical risks, affecting Gulf oil and gas supplies and causing further price increases. He urged robust investments to meet future energy needs despite fluctuations.

(With inputs from agencies.)