ExxonMobil CEO Darren Woods describes the affect of the Center East battle on the worldwide oil market on ‘Particular Report.’
ExxonMobil CEO Darren Woods mentioned there may be enough provide within the international oil market to resist any provide disruption to Iranian exports.
“There’s sufficient spare capability within the system as we speak to accommodate any Iranian oil that comes off the market,” Woods informed Fox Information’ Bret Baier on “Particular Report,” including that “The larger difficulty will probably be if infrastructure for exports or the transport previous the Strait of Hormuz is impacted.”
Woods was referring to how the market is extra involved concerning the ongoing battle between Israel and Iran disrupting the Strait of Hormuz, which is situated between Oman and Iran, and regarded the world’s most vital oil chokepoint, in response to the Vitality Info Administration (EIA).
Darren Woods, chairman and chief government officer of ExxonMobil Corp. (Andrey Rudakov/Bloomberg by way of Getty Photographs / Getty Photographs)
OIL PRICES SPIKE AFTER ISRAEL’S STRIKES ON IRAN
Iran produces 3.3 million barrels per day of crude oil and exports about 1.6 million barrels per day of crude oil, which accounts for lower than 2% of complete international demand, in response to Andy Lipow, president of consulting agency Lipow Oil Associates.
It is also a fraction of the oil that flows by means of the Strait of Hormuz. In 2024, the oil that flowed by means of the waterway, which connects the Persian Gulf with the Gulf of Oman and the Arabian Sea, averaged 20 million barrels per day, the equal of about 20% of world petroleum liquids consumption. To complicate issues, there are additionally only a few various choices to maneuver oil out of the strait whether it is closed.
Oil costs soared on Friday because the market after the Israeli Protection Forces (IDF) launched a sweeping strike on Iran’s nuclear services and navy leaders. U.S. West Texas Intermediate costs reached $72 a barrel because the strikes raised issues on Wall Avenue that escalating tensions between Israel and Iran may disrupt Iranian vitality provides.
ExxonMobil CEO Darren Woods mentioned there may be enough provide within the international oil market to resist any provide disruption to Iranian exports. (REUTERS/Brendan McDermid/File Picture / Reuters Pictures)
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Nevertheless, costs started to chill as export capability was spared within the assaults.
“I feel fairly purposefully, to not disrupt the oil provide,” Woods mentioned.
The lack of Iranian oil to the market may elevate costs by as much as $7.50 per barrel, but when oil exports by means of the Strait of Hormuz are affected, costs may climb to $100, in response to Lipow.
Retaliatory targets for Iran that would have the best affect on costs are oil tankers headed to the U.S. by means of the Strait of Hormuz, he added.
| Ticker | Safety | Final | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORP. | 114.02 | +1.54 | +1.37% |
Israeli missiles hit Iran’s Shahr Rey Refinery close to Tehran, which has a capability of 225,000 barrels per day, and the Shahran gasoline depot close to Tehran, Lipow mentioned.
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In complete, Iran has 11 refineries with a mixed 2.5 million barrels per day of oil refining capability.
Smoke rises from a location allegedly focused in Israel’s wave of strikes on Tehran, Iran, within the early morning of June 13, 2025. (SAN/Center East Photographs/AFP by way of Getty Photographs / Getty Photographs)
Iranian missiles hit Israel’s Haifa refinery, which has a capability of 197,000 barrels per day. Israel has two refineries with a mixed 300,000 barrels per day of refining capability.
