ExxonMobil Executives Warn US Consumers of Oil Price Surge
Global crude oil prices are forecast to surge sharply to $160 per barrel. This warning was issued by ExxonMobil Senior Vice President Neil Chapman, highlighting the dwindling commercial oil reserves amid ongoing geopolitical tensions.
Speaking at the 42nd annual Bernstein strategic conference in New York on Thursday (28 May), Chapman revealed that the world is approaching critically low oil inventory levels. He noted that this decline in reserves has been masked by Western nations’ releases from their strategic petroleum reserves (SPR).
‘We are approaching unprecedented inventory levels – extremely low,’ Chapman said. He projected that Dated Brent prices could surge to $150-$160 per barrel if stockpiles continue to decline in the coming weeks.
One key factor driving concern is disruptions to shipping routes in the Strait of Hormuz due to conflicts involving Iran. Chapman predicted a price increase of up to $70 per barrel if the disruption persists.
Despite reports of a draft peace agreement involving a $300 billion reconstruction fund supported by the United States, markets remain cautious. As of 29 May 2026, Dated Brent was trading at $91.71 per barrel, after peaking at $126.41 in late April.
Data from the US Energy Information Administration (EIA) shows the US Strategic Petroleum Reserve (SPR) stood at 365 million barrels as of 22 May 2026, far below the over 600 million barrels recorded at the start of President Joe Biden’s administration.
On the other hand, Saudi Arabia’s efforts to maximise the East-West pipeline, transporting 5 million barrels per day to the Red Sea, and the influx of oil from sanctioned nations like Russia and Venezuela into the market have so far helped mitigate losses from the Strait of Hormuz.
Meanwhile, China is reportedly bolstering its own strategic oil reserves. Unlike Western nations, data shows China tends to hold onto these reserves and relies more on domestic commercial inventories during crises, indirectly helping to ease global demand pressures.
The global energy market is now at a critical juncture. The balance between dwindling supply and geopolitical stability will be the primary determinant of commodity prices in the coming months. (Daily Caller/I-2)
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