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Exxon Warns Oil Inventories Approaching Historic Lows as Middle East Conflict Pressures Supply

Exxon Mobil's senior leadership cautioned Thursday that crude oil stockpiles will plunge to unprecedented levels within weeks. Prices are expected to rally sharply. Senior Vice President Neil Chapman told investors at a New York conference that inventory depletion is accelerating toward "really, really low levels" that will force crude prices significantly higher. Chapman projected Brent physical cargoes could spike to $150-$160 per barrel once reserves hit bottom. Current Brent futures for July delivery trade below $94 per barrel as markets anticipate a potential U.S.-Iran settlement that could reopen the Strait of Hormuz. Iran's blockade has already removed more than one billion barrels from supply, marking the largest disruption on record. While strategic petroleum reserves have cushioned the blow so far, Chapman warned that buffer "can't last forever." The International Energy Agency previously flagged record-pace inventory depletion, with member nations releasing 400 million barrels since March.