Executives from some of the largest oil companies in the US have delivered a blunt message to the White House: gas prices are about to get worse, and current policies aren’t going to stop it.
Leaders from Exxon Mobil, Chevron, and other major producers met with senior administration officials in late May to flag what they describe as dangerously low oil inventory levels. The culprit is the ongoing closure of the Strait of Hormuz, a chokepoint that handles roughly 20% of global oil and gas trade. With that artery effectively shut down amid escalating tensions with Iran, refineries across the country are burning through their remaining stockpiles at an alarming pace.
The numbers paint a grim picture
As of late May, the average US gasoline price hit $4.26 per gallon. That’s an increase of $1.28 from where prices stood before the Iran conflict began.
Exxon SVP Neil Chapman told officials that current inventory levels are “unheard of,” warning that sharp price increases could materialize within weeks. Industry leaders have described storage reserves as approaching “tank bottom.” The timeline executives laid out points to mid-to-late June as the inflection point when prices could spike further. That timing is particularly inconvenient, landing squarely in the early weeks of summer driving season, when demand traditionally surges.
