×

OPEC supply cuts unlikely: Enel CEO

A co-ordinated supply cut between members and non-members of oil group the Organization of the Petroleum Exporting Countries should not be expected in the near-term, the CEO of Italian utility Enel told CNBC on Friday.

Oil prices have seen renewed weakness in recent weeks, putting a focus on the world's big oil producers and whether they will cut back on supply to bolster prices.


Alessia Pierdomenico | Bloomberg | Getty Images

"I suspect we're not going to see much more co-ordination than we have seen so far," Enel CEO Francesco Starace told CNBC's Julia Chatterley on the side lines of the international Ambrosetti Forum in Italy.

Earlier on Friday, Arkady Dvorkovich, deputy Prime Minister of the Russian Federation, told CNBC that it would be "very difficult" for Russia, a major oil producer, to cut supply "artificially."

Brent crude oil prices were trading at about $50.05 a barrel on Friday, while U.S. WTI oil prices were at around $46.04 a barrel. U.S. oil prices have slid almost 49 percent in the past year and are down some 20 percent since the start of this year.

A multinational power company headquartered in Rome, the Enel Group has a presence in 30 countries across four continents. According to the company, revenue in 2014 was approximately 76 billion euros ($84.7 billion).

Commenting on Italy's outlook, Starace was broadly positive. "I think we are at a turning point materially, because the numbers show it," he said. "But maybe, more importantly, we are psychologically at a turning point, so the sentiment is turning around in Italy for good."

Italy, the third biggest economy in the euro zone, moved out of recession at the start of this year. Like other euro zone countries, Italy has benefited from a weak euro, the tumble in oil prices and aggressive monetary stimulus from the European Central Bank.