Oil Executives Warn of $150 Brent as U.S. Fuel Inventories Sink
Updated
Updated · POLITICO · Jun 4
Oil Executives Warn of $150 Brent as U.S. Fuel Inventories Sink
3 articles · Updated · POLITICO · Jun 4
Summary
$4.26-a-gallon U.S. gasoline could rise again within weeks, with oil executives warning inventories are nearing levels that could trigger a sharper fuel-price spike later this month.
8 million barrels of U.S. crude disappeared from company storage last week—the eighth straight draw—while total commercial petroleum inventories have fallen 52 million barrels since the war began.
Iran’s effective closure of the Strait of Hormuz for three months has cut a major supply artery, forcing countries to drain tanks; Exxon’s Neil Chapman said Brent could hit $150-$160 a barrel once stocks get too low.
The White House denied receiving private inventory warnings and says record U.S. output, Venezuelan supply and a Jones Act waiver are cushioning motorists, even as it released another 8 million barrels from the SPR.
Global inventories are still shrinking by about 5.8 million barrels a day despite a 400-million-barrel IEA response, raising the risk that a disruption once absorbed by stockpiles turns into broader shortages by late summer.
The Hormuz closure is disrupting more than oil. Could a global fertilizer shortage become the crisis's most devastating consequence?
With global economies at risk, will peace talks with Iran succeed before oil prices skyrocket past $150 a barrel?
Oil Prices Near $120: How the 2026 Strait of Hormuz Crisis Is Reshaping Global Energy and Economics
Overview
The global oil market is at a critical turning point, with rapidly surging prices driven by a sharp drop in oil inventories and alarmingly depleted strategic reserves. As demand for oil increases and crude prices exceed $110, market expectations have shifted, leading to the belief that a Federal Reserve rate cut is unlikely in the near term. This situation is made worse by a notable decline in global oil supply, creating immediate threats to economic stability. The combination of shrinking reserves, rising demand, and shifting market sentiment highlights the severe and interconnected challenges facing the oil market today.