Exxon (XOM), Chevron (CVX) Execs Warn Oil Prices to Spike as Inventories Near 'Really, Really Low Levels'

Exxon Mobil (XOM) Senior Vice President Neil Chapman and Chevron (CVX) CEO Mike Wirth warned on May 28 that global crude stockpiles are approaching critically low levels, with sharp price increases likely within weeks. The warnings came as the U.S. Strategic Petroleum Reserve has fallen to 365 million barrels—down 12% since the Iran conflict began—and inventories at the Cushing, Okla., hub have plunged to 24.5 million barrels, near the 20 million-barrel operational minimum. JPMorgan and Capital Economics project commercial inventories in developed economies could hit “critically low” levels by late June. The Strait of Hormuz remains contested, with ceasefire talks deadlocked and U.S. forces engaging blockade runners. “Once you get to the minimum inventory levels… there’s only one way to go,” Chapman said, forecasting a price surge. Wirth added that the market’s “shock absorbers” are depleting, pushing upward pressure on physical prices into June and July.