CEOs of several major American oil companies warn that the energy market is approaching the edge of a cliff

The largest oil company in the United States has warned that the longer the Strait of Hormuz remains closed, the more likely the global crude oil market is to approach an inflection point for price increases. ExxonMobil, Chevron, and ConocoPhillips said this week that for each additional day the waterway remains shut, the world will further draw down commercial inventories, strategic reserves, and the crude oil stored in tankers in the period before the U.S. and Israel potentially wage war on Iran. ExxonMobil CEO Darren Woods said on Friday during a conference call with analysts that supplies like these helped “alleviate” oil-price pressure in March and April, but they cannot be sustained over the long term. “Most people are aware that if you look at this unprecedented shock and global oil and natural gas supply, the market has not yet fully reflected the full impact,” Woods said. “If the strait remains closed, subsequent effects will become even more apparent.” (Cailian Press)