Strait of Hormuz is choked off and Exxon says $150 oil is coming — load up on big oil stocks
The Iran war has shut down the Strait of Hormuz, one of the world's most important oil shipping routes. An Exxon executive now warns that oil inventories will soon hit dangerous lows, potentially pushing prices to $150–160 per barrel.
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The Strait of Hormuz has been closed since the Iran war broke out in February, choking off a huge share of global oil shipments. Exxon's Neil Chapman says physical Brent oil could spike to $150–160 per barrel once inventories hit all-time lows in the coming weeks. Big oil companies like Exxon and Chevron make more money on every barrel they produce when prices climb, so their profits should surge alongside crude. Even if a ceasefire is reached, one analyst notes that the era of cheap $60 oil may be permanently over.