BATL, USO, UCO Edge Higher As Oil Gains: Exxon Executive Warns Shrinking Inventories Could Send Crude To $160

• Chapman said at the Bernstein Strategic Decisions Conference that dated Brent will likely shoot up to $150 to $160 levels due to low inventory.
• Chevron CEO Mike Wirth agreed, pointing to rapidly depleting strategic reserves amid the U.S.-Iran war and the Strait of Hormuz blockade.
• Meanwhile, U.S. President Donald Trump said on Monday that Iran “really wants to make a deal.”

Shares of major oil companies and related exchange-traded funds (ETFs) edged higher in overnight trading ahead of Monday as oil prices climbed amid renewed conflict between Israel and the Iranian-backed Hezbollah group in Lebanon, deepening worries over supply risks in the critical Strait of Hormuz.

Battalion Oil Corp. (BATL) was up nearly 7% at the time of writing, while the United States Oil Fund (USO) gained more than 2%, and the ProShares Ultra Bloomberg Crude Oil (UCO) climbed 3% higher.

Meanwhile, Neil Chapman, Senior Vice President of ExxonMobil (XOM), said during the Bernstein Strategic Decisions Conference that Brent crude oil prices could go as high as $160 a barrel amid declining inventories.

Brent crude futures expiring in July were up nearly 3%, trading at around $93.59 a barrel at the time of writing, while WTI crude futures expiring in June were about 3.01% higher, trading around $90.02 a barrel.

Major Oil CEOs Flag Concerns Over Rising Oil Prices

Chapman warned last week that global crude, gasoline, diesel, and jet fuel inventories were headed toward unprecedented lows, potentially driving dated Brent prices higher.

“I think Dated Brent, most people with a model would say Dated Brent will shoot up once you get to that really low inventory level, up to $150, $160,” he said.

“What happens is when the price gets to a certain level, demand destruction brings it back into balance. Prices go so high, (it) becomes unaffordable, and that's what happens,” he added.

"We're approaching unheard of inventory levels. I mean, really low levels. You can debate whether that's going to hit those really low levels in two weeks or three weeks. Once you get to that point, you'll see price shoot up," Chapman said.

Chevron (CVX) CEO Mike Wirth agreed, pointing to fast-depleting strategic reserves amid the U.S.-Iran war and Strait of Hormuz blockade since the start of the U.S.-Iran war, pressuring global oil supply.

"Over the next few weeks, we're likely to see those pressures flow through more directly to physical prices, and there's more upward pressure than I would expect as we get into June and certainly into July," Wirth said at the conference.

Global Oil Supply Concerns From IEA

The International Energy Agency said in a report in mid May that it forecasts global oil demand to contract by 420,000 barrels per day year-over-year in 2026 to 104 million bpd.

"With Hormuz tanker traffic still restricted, cumulative supply losses from Middle East Gulf producers already exceed 1 ​billion barrels with more than 14 million barrels per day of oil now shut in, an unprecedented supply shock," the agency said.

The agency expects demand weakness to be most severe in the second quarter, down by 2.45 million barrels per day, led by declines in petrochemicals and aviation.

The IEA noted that on the supply side, April global output had already declined to 95.1 million bpd, with cumulative losses since February reaching 12.8 million bpd due to Strait of Hormuz disruptions.

Trump On Iran

Meanwhile, U.S. President Donald Trump said on Monday that Iran “really wants to make a deal” even as tensions in the Strait of Hormuz remained elevated amid resumed airstrikes between the U.S. and Tehran.

Trump said in a post on Truth Social that the deal “will be a good one for the U.S.A. and those that are with us.”

“But don’t the Dumocrats, and various seemingly unpatriotic Republicans,  understand that it is MUCH tougher for me to properly do my job and negotiate, when political hacks keep negatively “chirping,” at levels never seen before, over and over again, that I should move faster, or move slower, or go to war, or not go to war, or whatever. Just sit back and relax, it will all work out well in the end,” he said.

What’s Retail Saying?

On Stocktwits, retail sentiment toward USO, BATL, XOM and CVX was in the ‘bearish’ territory, while it was in the ‘bullish’ territory for UCO.

One user said on Stocktwits, “$USO shoulda bought this Friday at close, no deal.  Oil and 10-year going up.”

Another user said, “$CVX $XOM There is no deal and they won't agree to an actual deal. Trump is trying to calm the markets instead of actually solving the problem.”

USO has gained more than 87% so far this year, while UCO has surged more than 125% in the same time. BATL shares have surged nearly 22%, while XOM has gained by over 18% and CVX has climbed 17% so far in 2026.

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