Oil crashed 20% on Iran peace hopes, but Exxon says supplies are running dry — buy the dip on oil majors
Oil prices have plunged 20% because investors are betting a US-Iran peace deal will reopen critical shipping lanes. But an Exxon executive just warned that global oil stockpiles are approaching dangerously low levels and could push prices to $150 or higher.
Idea
The oil sell-off is pricing in a best-case scenario where peace talks succeed and the Strait of Hormuz reopens quickly. But Exxon's Neil Chapman says physical inventories are nearing all-time lows and Brent crude could spike to $150–160 once stockpiles run critically short. Even if a ceasefire holds, rebuilding those drained inventories will take months, meaning the era of cheap oil is likely over regardless. Oil majors like Exxon and Chevron have been dragged down with crude, giving investors a chance to buy industry leaders at a discount while the underlying supply crunch persists.