Exxon Senior Vice President Neil Chapman warned Thursday:
Exxon Senior Vice President Neil Chapman warned Thursday:
“Commercial inventories of crude oil, of liquids, think petroleum, gasoline, diesel, jet fuel, they’ve all run down... We’re approaching unheard of inventory levels. I mean, really, really low levels.
You can debate whether that’s going to hit those really low levels in two weeks or three weeks. Once you get to that point, then you’ll see price shoot up. I mean, I think dated Brent, most people, well, a model would say dated Brent will shoot up. Once you get to that really low inventory level, up to $150, $160.
The models would tell you that. And then what happens is when the price gets to a certain level, demand destruction brings it back into balance. Prices go so high, it becomes unaffordable. And that’s what happens. And so we’re at that level right now.
And I think crude being in this sort of $90 to $110 for the last whatever it is, six weeks, has really been mitigated by running down inventories. It can’t last forever.“
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Source: Telegram "Slavyangrad"