ExxonMobil's Senior Vice President Neil Chapman issued a warning that energy prices could rise sharply in the coming weeks, citing historically low inventory levels for crude oil and related products such as gasoline, diesel, and jet fuel [1]. Chapman stated at the Bernstein Conference in New York that crude oil prices could reach as high as $160 per barrel if inventories continue to decline, emphasizing that current price stability has been maintained only due to the release of strategic petroleum reserves by various nations [1]. He noted, 'We're approaching unheard of inventory levels,' and predicted that once these bottom out, prices would 'shoot up' [1].
Chapman highlighted that dated Brent crude, the global benchmark, could surge to $150–$160 per barrel, a significant increase from the recent range of $90 to $110 over the past six weeks [1]. He explained that the recent drop in dated crude from a monthly average of $117 in April to near $103 for May was influenced by news of progress in a peace deal between the U.S. and Iran, but prices remain much higher than the pre-conflict level of $75 per barrel before the U.S. and Israel's bombing campaign on Iran in late February [1].
On the same day as Chapman's remarks, ExxonMobil shareholders approved a plan to move the company's legal home from New Jersey to Texas [1]. CEO Darren Woods cited Texas' strong regulatory environment as a key factor, stating, 'Aligning our legal home with our operating home, in a state that understands our business and has a stake in the company’s success, is important' [1]. ExxonMobil had already relocated its headquarters to Texas in 1989, and 75% of its U.S.-based workforce is already located in the state [1]. The company first announced the plan to move its legal home in March [1].
Following these developments, ExxonMobil's stock (XOM) closed at $145.26, down $1.70 or 1.16% [1].
CONCLUSION
ExxonMobil's leadership has issued a strong warning about the potential for a dramatic increase in energy prices due to declining inventories, while shareholders have approved a strategic move to Texas. The market responded negatively, with XOM shares falling over 1%, reflecting investor concerns about volatility in the energy sector.