Oil Executives Warn Brent Could Hit $160 as Hormuz Deal Eludes and Inventories Near Critical Lows
Updated
Updated · Reuters · Jun 5
Oil Executives Warn Brent Could Hit $160 as Hormuz Deal Eludes and Inventories Near Critical Lows
3 articles · Updated · Reuters · Jun 5
Summary
Exxon and other industry voices warned global oil buffers are nearing exhaustion, with Exxon saying dated Brent could jump to $150-$160 a barrel within weeks if inventories fall much further.
The risk is rising because tanker traffic through the Strait of Hormuz remains effectively closed despite repeated claims that a reopening deal is imminent, while summer fuel demand is approaching.
U.S. crude inventories including the Strategic Petroleum Reserve fell to 791 million barrels in the week to May 29, the lowest since February 2024, after dropping nearly 64 million barrels since the war began.
Analysts said the next shock would come less from the initial disruption than from the loss of emergency buffers, as SPR releases and weaker Chinese seaborne imports can no longer fully offset the supply hit.
Investors and economists see a longer-lasting oil risk premium feeding inflation and bond yields; Vanguard estimates U.S. growth would slow 0.4 percentage points if crude stayed near $120 for a year.
As oil prices surge, are we heading for a global recession or a permanent era of high-cost food and energy?
Is the U.S. naval blockade a masterstroke for energy security or a final push towards a catastrophic global war?
Global Oil Shock 2026: Strait of Hormuz Closure Drives Brent Crude Near $100, Threatens Global Economy
Overview
As of early June 2026, Brent crude oil prices remain highly volatile, standing at $97.44 per barrel—a sharp increase of about $32, or 48%, compared to a year ago. Although prices have dipped nearly 18% from last month’s peak, they are still 40-50% higher than pre-conflict levels. This surge is mainly driven by the closure of the Strait of Hormuz, which has disrupted global oil supply and forced countries to draw down emergency reserves. The ongoing crisis is fueling inflation, straining economies, and prompting governments to seek both immediate relief and long-term energy security solutions.