Exxon warns oil prices could spike within weeks as global inventories near record lows

Summary

Exxon and other major oil companies are warning that global oil inventories are approaching critically low levels due to the closure of the Strait of Hormuz and rapid drawdowns of strategic reserves. Exxon Senior Vice President Neil Chapman stated at an industry conference that inventories could hit unprecedented lows within two to three weeks, which would trigger a sharp spike in oil prices. The warnings come as top oil-consuming countries have been draining reserves to keep crude prices stable, but executives warn this strategy is unsustainable.