"Oil Could Reach $160 a Barrel"... U.S. Oil Industry Issues Urgent Warning to Trump

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\r\n[Financial News] Global crude inventories are falling rapidly as the Strait of Hormuz blockade drags on. The U.S. oil industry has reportedly warned the Donald Trump administration that if the trend continues, international oil prices could surge to $150 to $160 per barrel this month.
Politico reported on the 4th, citing four industry sources, that the U.S. oil industry recently raised concerns about inventory shortages with the White House and energy authorities.
An industry executive who had spoken with administration officials said, "We are already at dangerously low levels," adding, "We conveyed our concerns to the highest levels of government about what could happen between mid- and late June."
He warned, "I hope the government is watching the current inventory situation closely," and added that the market is "hitting the bottom of the tank."
The oil industry has also been sounding the alarm publicly. An executive at an oil company said remarks made by ExxonMobil Senior Vice President Neil Chapman on the 28th of last month were also relayed to the Trump administration.
At the time, Chapman said, "Inventories are approaching levels we have never seen before," and predicted, "I do not know whether it will take two weeks or three, but once we reach that level, Brent crude oil could rise to $150 to $160 per barrel."
The pace of inventory decline is also steep in practice. The United States and other major countries are releasing large amounts of strategic reserves to offset disruptions in Middle Eastern crude supplies.
According to the U.S. Energy Information Administration (EIA), U.S. commercial crude inventories fell by 8 million barrels last week, marking an eighth straight weekly decline. Stocks have now dropped to 3% below the five-year average.
Total U.S. commercial petroleum inventories, including crude oil and refined products, have fallen by 52 million barrels since the outbreak of the war. Global oil inventories have also declined by about 500 million barrels from prewar levels to around 7.5 billion barrels.
Jim Burkhard, vice president at S&P Global Commodity Insights, said most of the current inventories are already committed to buyers, leaving far less truly available supply.
He said, "I have never seen inventories fall this fast," calling the situation "shocking."
The White House, however, dismissed the concerns. A White House official countered, "Politico's anonymous sources are wrong." The United States Department of Energy (DOE) also said it remains in regular contact with the industry, but that inventory shortages were not discussed.
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km@fnnews.com Kim Kyung-min Reporter