White House ignores sobering warning by oil executives: report

Four senior oil industry executives warned Trump administration officials about global fuel inventories draining at alarming rates following Iran's effective closure of the Strait of Hormuz after U.S. and Israeli military strikes three months ago.

The executives told Politico, significant price spikes could arrive mid-to-late June.

U.S. crude stocks fell 8 million barrels last week —the eighth consecutive weekly decline— and now sit 3% below five-year averages.

Gasoline stocks are 5% below benchmark, while diesel and jet fuel lag 3% under.

Global inventories have declined approximately 500 million barrels at a rate of 5.8 million barrels daily.

Exxon Mobil's Neil Chapman warned crude prices could reach $150-$160 per barrel if declines continue.

National average gasoline prices stand at $4.26 per gallon —$1.28 higher than pre-conflict levels.

The White House denied these warnings, claiming it "does not have a supply problem."

RBC Capital Markets' Helima Croft warned, if the strait remains closed through September-October, industrial shortages will emerge.

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