Oil giants warn of record-low inventories, price surge

ExxonMobil and Chevron warn oil inventories may hit record lows soon, potentially pushing Brent crude to $150–$160 per barrel and increasing market volatility.

ExxonMobil and Chevron have warned that global oil inventories are approaching unprecedented lows and could reach record levels within weeks. Neil Chapman of ExxonMobil stated at a Bernstein conference in New York that the world is nearing unheard-of inventory levels. He cautioned that if these levels are reached, Brent crude prices could surge to between $150 and $160 per barrel. Chevron's Mike Wirth echoed these concerns, noting that market buffers are being steadily depleted. The International Energy Agency reported that reserves are being consumed at historic rates, with member countries releasing 400 million barrels in March alone. The closure of the Strait of Hormuz has further strained supply, removing about 14 million barrels per day from the global market. Analysts warn that commercial inventories are weaker than headline data suggests, raising concerns about potential energy shortages and significant price volatility in the near future.