Exxon Mobil Warns of Record Low Oil Inventories Ahead
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 19 hours ago
0mins
Source: CNBC
- Inventory Warning: Exxon Mobil's Neil Chapman stated at a conference that oil inventories are approaching unprecedented lows, expected to hit critical levels in the coming weeks, potentially driving prices up to $150 to $160 per barrel, significantly impacting market supply and demand dynamics.
- Demand Destruction: Chapman noted that once oil prices reach a certain threshold, demand will be curtailed, leading to a rebalancing of the market, a phenomenon that could rapidly manifest after inventories hit their minimum levels, affecting global oil market stability.
- Historic Supply Disruption: The International Energy Agency reported that Iran's closure of the Strait of Hormuz has cost the market over a billion barrels, marking the largest oil supply disruption in history; although current inventories have mitigated the impact, this situation cannot last indefinitely.
- Market Reaction Lag: Despite the crude futures market failing to adequately reflect the scale of the supply disruption caused by the war in the Middle East, Chapman emphasized that as inventories continue to dwindle, the market will inevitably face upward price pressures.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 146.960
Low
114.00
Averages
132.17
High
158.00
Current: 146.960
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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