Exxon exec warns global oil inventories near critically low

A senior ExxonMobil executive warned on Thursday that global oil inventories are nearing critically low levels, setting the stage for a potential sharp spike in crude prices within weeks. Neil Chapman, the company’s senior vice president, told an investor conference that dated Brent crude could surge to between $150 and $160 per barrel once stockpiles are exhausted.

Chapman delivered his assessment at the Bernstein Strategic Decisions Conference in New York. He stated that commercial inventories of crude oil, gasoline, diesel, and jet fuel have been drawn down to what he described as "unheard of" levels. This drawdown, supplemented by large releases from Western nations' strategic petroleum reserves, has so far mitigated the full price impact of significant supply disruptions.

The primary disruption cited is the closure of the Strait of Hormuz, a critical shipping chokepoint that has cut off a substantial portion of global oil flows. Chapman characterized it as an extreme supply shock, noting that approximately 14 million barrels per day of Middle Eastern crude have been removed from the market. While releases from strategic reserves and the movement of previously sanctioned oil...