Oil inventories nearing crisis levels, Exxon sees $150+ crude — buy energy stocks before the spike
The Strait of Hormuz — the narrow waterway where about a fifth of the world's oil passes — has been shut down since the Iran war began in February. Now Exxon is warning that global oil stockpiles could hit all-time lows within weeks, which could send crude prices to $150–$160 a barrel.
Idea
The Strait of Hormuz closure has choked off the world's most important oil shipping lane for months. An Exxon executive just warned that inventories are about to hit critically low levels, which could push crude to $150–$160 a barrel. Even if a ceasefire is reached with Iran, analysts say the era of cheap $60 oil is over because the supply damage is already done. Oil companies like Exxon and Chevron stand to make record profits if crude keeps climbing, and their stock prices tend to move in the same direction as oil.