The global oil market is well supplied and no shortage of crude is forecast in the short term, Italian energy company Eni SpA's (E) Chief Executive Paolo Scaroni said in an interview with French business daily Les Echos Tuesday.
Global oil production remains stable and demand has started to slow down, Scaroni said.
Scaroni said he expects crude prices to fall to about $70.00 a barrel in the long term.
he also said that acquiring Belgian gas distribution company Distrigas, a unit of Suez (SZE.FR), was "a strategic priority."
"Taking over Distrigas gives us the means to optimize supplies from Northern Europe," with Distrigas becoming a new regional hub for Eni, Scaroni said.
Suez, which is set to merge with French state-controlled gas operator Gaz de France (1020848.FR), has been in exclusive talks with Eni since Friday to sell its Distrigas unit.
Eni could in exchange sell some of its assets to Suez, such as the natural gas distribution concession in Rome or some interests in natural gas fields in the Northern Sea or the Gulf of Mexico, Scaroni said. he also said Eni could sign long-term natural gas supply contracts with Suez.