Exxon Warns of "Unheard Of" Oil Shortages, Sees Risk of Price Spike

ExxonMobil is warning that global oil inventories are nearing unusually low levels, raising concerns that crude prices could spike sharply if supply tightens further, Tobi Opeyemi Amure reported for TheStreet.

Oil storage facilities as ExxonMobil warns of tightening global crude inventories. (Photo: ExxonMobil)

Speaking at the Bernstein Strategic Decisions Conference in New York, ExxonMobil Senior Vice President Neil Chapman said global stockpiles have masked deeper supply shortages.

“We’re approaching unheard-of inventory levels,” Chapman reportedly said, warning that emergency stockpile releases have helped cushion markets but may not be sustainable.

Chapman argued that supply disruptions totaling roughly 11 million to 12 million barrels per day would normally trigger a sharp surge in prices.

According to reports, Exxon believes Brent crude could rise to between $150 and $160 per barrel if inventories continue to decline before demand destruction helps rebalance markets.