Global crude oil prices are forecast to surge sharply to $160 per\nbarrel. This warning was issued by ExxonMobil Senior Vice President Neil\nChapman, highlighting the dwindling commercial oil reserves amid ongoing\ngeopolitical tensions.<\/p>\n
Speaking at the 42nd annual Bernstein strategic conference in New\nYork on Thursday (28 May), Chapman revealed that the world is\napproaching critically low oil inventory levels. He noted that this\ndecline in reserves has been masked by Western nations\u2019 releases from\ntheir strategic petroleum reserves (SPR).<\/p>\n
\u2018We are approaching unprecedented inventory levels \u2013 extremely low,\u2019\nChapman said. He projected that Dated Brent prices could surge to\n$150-$160 per barrel if stockpiles continue to decline in the coming\nweeks.<\/p>\n
One key factor driving concern is disruptions to shipping routes in\nthe Strait of Hormuz due to conflicts involving Iran. Chapman predicted\na price increase of up to $70 per barrel if the disruption persists.<\/p>\n
Despite reports of a draft peace agreement involving a $300 billion\nreconstruction fund supported by the United States, markets remain\ncautious. As of 29 May 2026, Dated Brent was trading at $91.71 per\nbarrel, after peaking at $126.41 in late April.<\/p>\n
Data from the US Energy Information Administration (EIA) shows the US\nStrategic Petroleum Reserve (SPR) stood at 365 million barrels as of 22\nMay 2026, far below the over 600 million barrels recorded at the start\nof President Joe Biden\u2019s administration.<\/p>\n
On the other hand, Saudi Arabia\u2019s efforts to maximise the East-West\npipeline, transporting 5 million barrels per day to the Red Sea, and the\ninflux of oil from sanctioned nations like Russia and Venezuela into the\nmarket have so far helped mitigate losses from the Strait of Hormuz.<\/p>\n
Meanwhile, China is reportedly bolstering its own strategic oil\nreserves. Unlike Western nations, data shows China tends to hold onto\nthese reserves and relies more on domestic commercial inventories during\ncrises, indirectly helping to ease global demand pressures.<\/p>\n
The global energy market is now at a critical juncture. The balance\nbetween dwindling supply and geopolitical stability will be the primary\ndeterminant of commodity prices in the coming months. (Daily\nCaller\/I-2)<\/p>\n
ExxonMobil reported a $4.9 billion drop in first-quarter 2026 profits\ndue to Iran war-related supply disruptions and derivative issues,\ndespite Brent crude prices breaching $100.<\/p>\n
As part of efforts to bolster national energy resilience, ExxonMobil\nhas introduced a rapid diesel service.<\/p>\n
The Cepu Block, an oil field managed by ExxonMobil Cepu Limited\n(EMCL) and Pertamina, holds a strategic position as the backbone of\nnational oil production.<\/p>\n
ExxonMobil Lubricants Indonesia reaffirmed its commitment and support\nat the Manufacturing Indonesia Series exhibition at JI Expo, Kemayoran,\nJakarta, from 4-7 December 2024.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/exxonmobil-executives-warn-us-consumers-of-oil-price-surge-1780145590", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }