Strait of Hormuz is shut and Exxon says oil is heading to $150 — ride the energy squeeze
The Strait of Hormuz — the narrow waterway through which roughly a fifth of the world's oil flows — has been shut down since the Iran war began in February. An Exxon executive now warns that global oil stockpiles are about to hit record lows, which could push prices to $150–160 a barrel.
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The Strait of Hormuz has been closed since February, choking off roughly 20% of global oil supply. Exxon's head of exploration now says physical oil cargoes will spike to $150–160 per barrel once inventories hit all-time lows in the coming weeks. Even if a ceasefire is reached, analysts say the era of cheap $60 oil is likely over because supply chains have been permanently disrupted. Oil producers like Exxon and Chevron stand to make record profits as the price they receive per barrel climbs, so their stock prices tend to follow oil higher with a short lag.