Houston, May 30, 2026, 17:04 CDT
Exxon Mobil senior vice president Neil Chapman told a Bernstein investor conference that crude prices could spike to $150-$160 a barrel in just weeks if global inventories drop to minimum levels. The warning adds pressure to the oil market, even as futures slipped on hopes for a U.S.-Iran ceasefire. “We’re approaching unheard of inventory levels,” Chapman said. Once stocks hit the bottom, prices can “shoot up.” Chron
Traders right now are betting on a diplomatic exit, but executives keep watching real oil flows. Brent crude finished Friday at $92.05 and U.S. West Texas Intermediate at $87.36 a barrel. Reuters said the U.S.-Iran deal wasn’t done yet, and shipping through the Strait of Hormuz is still much lower than before the war. “I’m surprised prices aren’t higher,” said John Kilduff, partner at Again Capital. UBS analyst Giovanni Staunovo said low inventories are still key, even with all the focus on the deal. Reuters
Chapman said the hit to the market was softened by existing crude and fuel inventories, oil from emergency reserves, and sanctioned oil still at sea. He told Fox Business that commercial stocks of crude, gasoline, diesel and jet fuel dropped, which pushed out the effects of the disruption.
Exxon wrapped up its legal move to Texas just days before the warning, after shareholders backed the shift from New Jersey. A filing Friday showed 71.2% of votes supported changing Exxon’s legal home, with 28.8% voting no.
Exxon is calling the change “alignment”, not a relocation. The company said its headquarters have been in Texas since 1989, where it already has executive leadership, corporate functions, key research sites and most of its U.S. staff. CEO Darren Woods said in March, “aligning our legal home with our operating home” mattered to the company. ExxonMobil
Shareholders faced opposition from proxy firms Glass Lewis and Institutional Shareholder Services, which recommended against the change, saying it might hurt shareholder rights. Exxon said it wouldn’t use Texas rules to roll back investor protections, and investors also voted down a plan to expand its retail voting program.
Chevron is echoing Exxon’s message. The Financial Times said Chevron CEO Mike Wirth expects oil prices to climb in the next two months as crude stockpiles drop and the Hormuz blockade pulls 12 million to 13 million barrels a day from global supply, draining what he called the market’s “shock absorbers.” Financial Times
Chevron CEO Mike Wirth told Bloomberg TV the company won’t pay a toll to move ships through the Strait of Hormuz, Reuters said. He noted several ships have come under attack in the past few days. Shipowners and insurers, he said, need to get their confidence back before trade returns to normal.
But it’s not a simple case of prices spiking. If there’s a deal to open Hormuz with no tolls and lower war-risk insurance, prices could fall just as quickly. But if the reopening is only partial, or the terms stay disputed, traders may not get clear direction. On Friday Reuters said Trump told negotiators to have the strait “immediately open, no tolls”; Iranian officials told Reuters any opening depends on Tehran’s terms, and only after the U.S. lifts its blockade. Reuters
Diplomacy could lag behind the drop in inventories. U.S. Defense Secretary Pete Hegseth said Saturday the U.S. was prepared to resume strikes on Iran if talks break down, as negotiators tried to work through significant differences. Reuters reported the war has driven up energy prices worldwide by Iran’s near shutdown of Hormuz.
