Oil chokepoint shut, Exxon warns of supply emergency — ride the energy surge
The Strait of Hormuz — the world's most important oil shipping lane — is shut down due to the Iran war. An Exxon executive just warned that oil stockpiles will soon hit dangerously low levels, which could push crude prices to $150 or higher.
Idea
The Iran war has choked off the Strait of Hormuz, through which roughly a fifth of the world's oil flows every day. An Exxon senior executive is now publicly warning that global inventories will soon fall to record lows, pushing physical Brent crude to $150–$160 a barrel. When the person running one of the world's largest oil companies says prices are about to spike, the market listens. Oil majors like Exxon and Chevron stand to make significantly more profit per barrel, and their shares tend to move ahead of the actual price spike as investors re-rate earnings expectations.