Major U.S. oil companies warn: We are approaching brink

Pars Today – Major American oil companies have warned that the longer the Strait of Hormuz remains closed, the closer the global crude oil market moves toward a turning point marked by higher prices.

According to Pars Today, these U.S. companies say that with each day the Strait of Hormuz remains shut, the world is consuming commercial inventories, strategic reserves, and crude oil that had been stored in tanks and tankers prior to the outbreak of the U.S. and Israeli war against Iran.

ExxonMobil, Chevron, and ConocoPhillips announced this week that these reserves helped keep prices contained during March and April, but that this situation cannot continue indefinitely.

The Financial Times also warned about a potential surge in oil prices within the next month.

Meanwhile, oil traders have cautioned that within four weeks the market could reach a tipping point that would significantly drive up prices, as the continued closure of the Strait of Hormuz has reduced global inventories to below critical levels.