Oil could rocket to $150 as Hormuz shutdown drains global stockpiles — buy the big oil producers
The Strait of Hormuz — the world's most important oil shipping lane — has been shut down since the Iran war began in February. An Exxon executive now warns that global oil stockpiles will hit record lows within weeks, pushing prices toward $150–160 a barrel.
Idea
The Iran war has choked off the Strait of Hormuz, through which roughly a fifth of the world's oil normally flows. Exxon is now publicly warning that inventories will soon hit dangerously low levels, with physical oil cargoes potentially spiking to $150–160 per barrel. Even if a ceasefire materializes, analysts say the era of cheap $60 oil is over because years of underinvestment in new supply can't be fixed overnight. Major oil producers like Exxon and Chevron stand to reap windfall profits from this sustained price surge, and their shares tend to move in the same direction as crude over multi-week stretches.