Chevron Warns Oil Could Hit $160 Within Weeks as Hormuz Closure Drains 12-13 Million Bpd
Updated
Updated · OilPrice.com · May 29
Chevron Warns Oil Could Hit $160 Within Weeks as Hormuz Closure Drains 12-13 Million Bpd
7 articles · Updated · OilPrice.com · May 29
$150-$160 oil could arrive within two to three weeks, Chevron CEO Mike Wirth said, warning that shrinking crude and fuel inventories are leaving the market with little capacity to absorb further disruption.
A three-month Iran war and the closure of the Strait of Hormuz have removed 12 million-13 million barrels a day from global markets, while commercial stocks and strategic reserves that had cushioned prices are now running low.
That warning came after oil fell 10% over the past week on hopes of a US-Iran deal, even as Wirth said tighter physical markets should push prices higher through June and July.
Exxon echoed the alarm at the same conference, saying inventories are nearing unheard-of lows and models point to Brent spiking toward $150-$160 before demand destruction restores balance.
Executives also warned the shock could outlast any ceasefire: Adnoc said Hormuz flows may take at least four months to recover to 80% and may not fully normalize before early or mid-2027.
With the world’s oil buffer vanishing, will prices soon surge to $150 and trigger a global recession?
Why did oil prices drop during the biggest supply crisis in history, and what happens when this paradox breaks?
How is the blockade of a single strait now threatening global food supplies and other essential industries?
Strait of Hormuz Shutdown Pushes Oil to $150: The 2026 Global Energy and Economic Crisis
Overview
The report explains how the ongoing conflict in the Middle East has led to the closure of the Strait of Hormuz, a vital route for global oil and gas supplies. This chokepoint disruption has removed a huge share of Middle Eastern oil and LNG from world markets, causing an unprecedented supply shock. While existing inventories softened the initial blow, reserves are quickly running out. As a result, energy prices are soaring, economies are under pressure, and governments are scrambling for solutions. The crisis highlights the world’s vulnerability to supply disruptions and the urgent need for new strategies to ensure energy security.