Exxon Mobil has issued a stark warning regarding the global energy market, projecting that oil inventories are poised to reach critically low levels within the next few weeks. Senior Vice President Neil Chapman highlighted that the ongoing conflict in the Middle East has created a significant supply disruption, which is expected to trigger a sharp increase in oil prices as stockpiles are exhausted.

Speaking at a recent industry conference, Chapman emphasized that the market is approaching unprecedented inventory lows. He noted that once these levels are breached, the resulting price volatility will likely drive Brent oil cargoes to between $150 and $160 per barrel. According to the executive, this extreme pricing environment will eventually lead to demand destruction, which would be the only mechanism capable of forcing the market back into balance.

While crude oil futures have remained below $100 per barrel due to investor optimism surrounding potential diplomatic resolutions in the Middle East, industry leaders argue that current futures pricing fails to accurately reflect the severity of the supply crisis. With the Strait of Hormuz remaining a focal point of instability, the depletion of global reserves is occurring at a record pace, suggesting that the current buffer provided by existing stockpiles is rapidly nearing its end.