Surging Oil Prices Impact Global Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 15 2026
0mins
Source: Fool
- Oil Price Surge: Driven by the war in Iran and its impact on Middle Eastern oil supplies, Brent crude prices have skyrocketed by approximately 80% this year to around $110 per barrel, significantly affecting global oil price expectations and market dynamics.
- Demand Outlook Revision: The International Energy Agency (IEA) has revised its global oil demand forecast down by 420,000 barrels per day, indicating that demand destruction from soaring prices is occurring, although this figure is minor compared to the ongoing supply shortfall.
- Escalating Supply Shortage: Oil production in the Middle East has plummeted by over 50%, with Iraq's output dropping from 4.9 million barrels per day to 1.6 million, leading to an overall supply loss exceeding 10 million barrels, forcing countries to draw from global inventories to meet demand.
- Investment Opportunities Arise: Despite the demand destruction caused by rising oil prices, consumption remains above supply levels, suggesting that elevated prices will persist, particularly making energy stocks like Exxon and Chevron attractive investment options with significant upside potential.
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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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See More
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