Oil inventories near record lows after Hormuz shutdown — accumulate Exxon and Chevron
The Strait of Hormuz — the narrow passage where about a fifth of the world's oil flows through — has been shut down since the Iran war began in February. Now Exxon is warning that global oil stockpiles are about to hit record lows, which could push prices to $150–$160 a barrel.
Idea
The Strait of Hormuz closure has choked off roughly 20% of the world's daily oil supply for months. Exxon's own executive is now saying inventories are weeks away from all-time lows and that physical oil cargoes could rocket to $150–$160 per barrel. When an oil major that produces millions of barrels a day publicly warns of a supply crisis, it usually means the squeeze is already baked in. That's supportive of continued upward pressure on oil prices and the big producers that pump it. Exxon and Chevron stand to benefit directly because higher oil prices flow straight into their profits with little extra cost.