ExxonMobil Senior Vice President Neil Chapman warned that crude prices could reach $150 to $160 per barrel. He told the Bernstein Strategic Decisions Conference that global oil inventories are approaching critically low levels.
Chapman stated that emergency reserve releases previously masked a significant supply deficit. He noted that the market’s supply cushion has nearly disappeared.
Geopolitical disruptions continue to tighten the market, specifically shipping constraints through the Strait of Hormuz. Global observed oil inventories fell sharply in recent months.
Analysts are responding by raising price targets on energy stocks. This commentary highlights increasing supply-side risks for the global market.