Exxon Warns Oil Supply Crunch by Early July as Inventories Dwindle
XOM•Exxon senior VP Neil Chapman predicts global oil supply pressures will drive prices higher by early July as inventories hit critically low levels. US crude stocks have fallen to 791 million barrels, the lowest since February 2024, while 10–14 million barrels per day remain offline in the Middle East.
1. Executive Supply Alert
Exxon senior VP Neil Chapman warns that global oil supplies will reach a breaking point by early July, anticipating upward pressure on physical prices. Chevron CEO Mike Wirth echoes concerns, noting that buffer stocks are “steadily drawn down” and market absorption capacity has drastically diminished.
2. Global Inventory Drawdown
At least 10 million barrels per day of production remain offline in the Middle East, with some estimates up to 14 million barrels. US crude inventories have declined to 791 million barrels, the lowest since February 2024, reflecting widespread reserve depletion.
3. Market Positioning
Traders have trimmed Brent crude positions to 18-week lows while short positions on crude have tripled, signaling bearish bets on near-term price stability yet potential for sudden spikes once disruptions persist.
