- Top US oil executives warned Trump administration of worsening energy crisis from Strait of Hormuz disruptions
- Exxon, Chevron, and ConocoPhillips CEOs highlighted risks of rising oil prices and refined product shortages
- Oil prices surged from $87 to $99 per barrel amid supply concerns linked to Iran conflict
Top American oil executives have warned the Donald Trump administration that the energy crisis triggered by US and Israel's war on Iran will likely worsen over the next few days.
The disruptions at the Strait of Hormuz may continue to fuel volatility in global energy markets, executives from Exxon Mobil, Chevron and ConocoPhillips told senior officials, including the US energy secretary Chris Wright and interior secretary Doug Burgum, according to a report by the Wall Street Journal.
Exxon Mobil CEO Darren Woods said oil prices could rise further, caused by supply concerns and traders betting on future shortages. He also warned of a potential supply crunch in refined products such as petrol and diesel.
The Strait of Hormuz is one of the world's most important routes for transporting oil, and any disruption to ships passing through it causes instability in global energy supplies and prices.
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Chevron CEO Mike Wirth and ConocoPhillips CEO Ryan Lance told US officials that the disruption is very large and serious, and it's not a short-term issue. Oil prices have risen sharply, from about $87 per barrel to $99 per barrel in just a few days.
Speaking to reporters aboard Air Force One, Trump said oil prices are likely to fall sharply once the conflict ends. "Oil prices will come tumbling down once it is over, and it will be over pretty quickly," he said.
The rising oil prices were not a big concern, for the US was the world's largest oil producer, and it benefited the American oil companies when the prices went up, he said.
Steven Pruett, CEO of Elevation Resources, said, "The world doesn't need $120 oil. It's going to cause economic destruction."
On Monday, Trump said the US should not be the only country protecting the Strait of Hormuz, as the route is mainly used by other countries, especially China, which depends heavily on it for oil imports.
"I'm demanding that these countries come in and protect their own territory, because it is their territory. It's the place from which they get their energy. And they should come, and they should help us protect it," Trump said.
He claimed about 90 per cent of China's oil passes through this route while the US only relies on it for 1 to 2 per cent of its supply. "Why are we maintaining the Hormuz Strait when it's really there for China and many other countries? Why aren't they doing it?" he added.
