Exxon warns of imminent energy price surge as shareholders approve Texas relocation

Panelists on ‘The Big Money Show’ examined the recent U.S.-Iran ceasefire extension, developments in the Strait of Hormuz, and their implications for financial markets.

ExxonMobil Senior Vice President Neil Chapman warned that energy prices could surge sharply in the coming weeks, just after the company announced the relocation of its corporate domicile from New Jersey to Texas.

During a speech at the Bernstein Conference in New York on Thursday, Chapman cautioned that crude oil prices might climb to $160 per barrel as global inventories continue to draw down.

‘We are approaching unprecedented inventory levels,’ Chapman stated. ‘These are truly historic lows. While the exact timing—whether within two or three weeks—remains uncertain, once inventories reach such lows, price spikes are inevitable.’

Chapman noted that the current low price environment persists largely due to the release of strategic petroleum reserves by several nations.

MARKETS JITTERY AHEAD OF KEY INFLATION DATA AS OIL PRICES SURGE ON IRAN TENSIONS

‘Global commercial inventories of crude oil and related products—including petroleum, gasoline, diesel, and jet fuel—have declined significantly. The drawdown, combined with the strategic petroleum releases by many Western nations, has helped cushion price pressures,’ Chapman explained.

Senior Vice President of ExxonMobil Neil Chapman gestures during the APEC CEO Summit in Port Moresby on Nov. 16, 2018, a part of the Asia-Pacific Economic Cooperation (APEC) Summit. (FAZRY ISMAIL/AFP via Getty Images / Getty Images)

He further warned that Brent crude, the global benchmark for oil prices, ‘will shoot up… potentially reaching $150 to $160 per barrel.’

‘I believe crude has traded in the $90‑$110 range for the past several weeks, a level that has been supported by inventory drawdowns. However, that support cannot persist indefinitely.’

BP ABRUPTLY REMOVES CHAIRMAN ALBERT MANIFOLD AS STOCK PRICE TUMBLES 10%

Dated crude fell from an April average of $117 to about $103 in May, slipping sharply after news of progress toward a U.S.-Iran peace agreement.

A view of a residential area affected during the United States-Israeli military operations in the city of Karaj in Alborz province, several kilometers west of Tehran, Iran, on April 3, 2026. The area was struck on March 9. (Morteza Nikoubazl/NurPhoto via Getty Images / Getty Images)

Nevertheless, prices remain well above the roughly $75 per barrel level observed before the U.S. and Israel conducted a bombing campaign in late February, as reported by S&P Global.

Chapman delivered his message on the same day that Exxon shareholders approved a plan to move the company’s legal home from New Jersey to Texas.

An Exxon gas station in Albany, California, on Thursday, May 1, 2025. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

Citing Texas’ robust regulatory framework, ExxonMobil CEO Darren Woods stated that the state offers a more suitable environment for the company.

‘Aligning our legal domicile with our operational base in a state that comprehends our business and shares an interest in our success is essential,’ Woods added.

ExxonMobil already moved its headquarters to Texas in 1989 and all of its corporate leadership work from the Lone Star state already. The company said 75% of it’s U.S.-based workforce already work in Texas as well.

Source link