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Tuesday, 8 November 2016

Eni wants non-OPEC producers to cut output

Is Eni in trouble? Eni CEO Claudio Descalzi said he wants non-OPEC oil producers to start reducing output, according to Bloomberg. OPEC members had decided to cut output for the first time in eight years and are looking to persuade other producers to follow suit. “OPEC cuts are quite important for our financial investors,” Descalzi explains, saying the group has “a very strategic role that can give assurance to our investors that we have a floor.” Descalzi is hoping crude prices would hit USD 50 per bbl, saying “looking at our break-even price, that is enough.” Eni had produced a “greater-than-expected third-quarter loss” and is reducing capital expenditure. The company is the partner in developing Egypt’s “supergiant” gas field, Zohr.

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