✎ Contributed by Ty Griffin
Energy stocks traded lower Friday after Exxon Mobil warned that global oil inventories could fall to historically low levels within weeks, potentially triggering a sharp spike in crude prices. Speaking at an industry conference, Exxon Senior Vice President Neil Chapman said inventories are approaching “really, really low levels” as the market continues to absorb disruptions tied to the Middle East conflict.
Chapman warned that physical Brent crude prices could rise to as much as $150 to $160 per barrel if inventories reach critical levels. The comments come as investors continue to weigh the possibility of a diplomatic resolution that could reopen the Strait of Hormuz and ease supply concerns. Despite Exxon’s warning, crude futures remained below $100 per barrel as markets focused on the potential for a U.S.-Iran agreement.
Market Reaction
- Exxon Mobil Corp. (NYSE: XOM): $145.65, down $1.36 (0.93%)
- Chevron Corp. (NYSE: CVX): $181.79, down $1.32 (0.72%)
- ConocoPhillips (NYSE: COP): $113.79, down $1.18 (1.03%)
- Occidental Petroleum Corp. (NYSE: OXY): $56.59, down $0.72 (1.26%)
- APA Corp. (NASDAQ: APA): $36.33, down $0.20 (0.55%)
Investor Sentiment
The decline across energy stocks suggests investors remain skeptical that the worst-case inventory scenario will materialize in the near term. While Exxon’s warning highlights growing concerns about supply availability, markets appear to be assigning greater weight to the possibility of geopolitical de-escalation and a restoration of disrupted oil flows.
At the same time, Exxon’s comments underscore how quickly sentiment could shift if inventories continue falling. Investors are closely watching physical oil markets for signs that stockpiles are being depleted faster than expected, which could create significant volatility across the energy sector if supply constraints intensify.
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