Executives from major US oil companies recently delivered a blunt message to the White House: global oil inventories are draining fast, and Americans are about to feel it at the pump.
The warning, shared with senior Trump administration officials in recent weeks, paints a picture of a supply crisis driven by the ongoing conflict in Iran and disruptions choking the Strait of Hormuz. The executives described current storage levels as approaching “tank bottom,” which is the energy industry’s way of saying there’s barely anything left to draw from.
A $150 barrel is on the table
The core of the warning centers on timing. By mid-to-late June, as the US enters peak summer driving season, gasoline prices could spike considerably. Oil benchmarks, according to the executives’ assessment, could climb to $150 per barrel or higher.
Iran’s conflict, now stretching past the 60-day mark, has created serious logistical problems for global oil supply. The Strait of Hormuz, a narrow waterway through which roughly a fifth of the world’s oil passes on any given day, has been caught in the crossfire. Countries and companies have been drawing down their inventories to compensate for the lost Middle Eastern supply, but the executives made clear to the White House that the buffer is running out.
