Exxon exec warns oil could hit $160 as shareholders back Texas move

Exxon Mobil’s senior vice president Neil Chapman cautioned that global crude prices could surge to $160 a barrel within weeks, citing “unheard of” low commercial inventories. His warning came on the same day Exxon shareholders voted to move the company’s legal headquarters from New Jersey to Texas [1].

Key takeaways

• Chapman predicts Brent crude could reach $150‑$160 per barrel as inventories run down [2].
• The price warning was delivered at the Bernstein Conference in New York, where Chapman noted strategic petroleum reserve releases have masked the underlying shortage [3].
• Shareholders approved a plan to shift Exxon’s legal home to Texas, a move the CEO says aligns the legal and operating locations [3].
• Exxon already operates most of its U.S. leadership from Texas, with about 75% of its U.S. workforce based there [3].
• The company’s warning follows recent geopolitical tension in the Middle East that has kept oil prices elevated [2].

Executive warning and inventory concerns

At the Bernstein Conference, Chapman described commercial inventories of crude oil, gasoline, diesel and jet fuel as “really, really low,” warning that once these levels hit a critical point, prices would “shoot up” dramatically [3]. He linked the current price stability—crude trading between $90 and $110 for six weeks—to the drawdown of strategic petroleum reserves by Western nations, which he said has “mitigated the impact” of the inventory decline [3]. Chapman projected that Brent, the global benchmark, could climb to $150‑$160 per barrel if the trend continues [2].

Shareholder vote and Texas relocation

The same meeting saw Exxon shareholders approve a plan to move the corporation’s legal headquarters from New Jersey to Texas [1]. CEO Darren Woods framed the relocation as aligning the company’s “legal home with our operating home” in a state that “understands our business and has a stake in the company’s success” [3]. While Exxon already moved its operational headquarters to Texas in 1989 and has a majority of its U.S. workforce there, the formal legal shift underscores a strategic commitment to the state’s regulatory environment [3].

Why it matters

Chapman’s price forecast signals a potential sharp rise in fuel costs for consumers if commercial inventories continue to dwindle, especially as geopolitical tensions in the Middle East keep supply concerns high [2]. The simultaneous legal move to Texas may give Exxon greater regulatory flexibility and align its corporate structure with its operational footprint, potentially influencing future investment and cost‑saving strategies. Investors and policymakers will be watching both the inventory trends and the impact of the headquarters shift as the oil market navigates supply constraints and geopolitical risk.