Exxon Executive Says Oil Inventories Will Reach Record Lows in Weeks

Exxon Mobil senior vice president Neil Chapman said Thursday that global oil inventories will fall to record low levels in two to four weeks. "We're approaching unheard of inventory levels," Chapman told attendees at a Bernstein conference in New York.

" Chapman added that once inventories reach those minimum levels, physical Brent crude cargoes will trade between $150 and $160 per barrel. He noted that higher prices would then reduce demand and restore market balance.

July delivery closed below $94 per barrel on Thursday. S. and Iran that could reopen the Strait of Hormuz. Iran's closure of the strait has removed more than one billion barrels from the market, the largest supply disruption on record, according to the International Energy Agency.

Member countries agreed in March to release 400 million barrels from strategic reserves to offset the shortfall. Chapman said current stockpiles have cushioned the impact but cannot continue indefinitely. The IEA reported earlier this month that inventories are declining at a record pace.