ExxonMobil Senior Vice President Neil Chapman warned that crude prices could reach $150 to $160 per barrel. Speaking at the Bernstein Strategic Decisions Conference, Chapman stated that global oil inventories are approaching critically low levels.
Chapman noted that emergency reserve releases have masked a significant supply deficit. Global observed stocks fell sharply in recent months, leaving the market with almost no cushion.
Geopolitical disruptions continue to tighten the market, specifically shipping constraints in the Strait of Hormuz. This commentary aligns with analysts who are currently raising price targets for energy sector stocks.