ExxonMobil CEO Darren Woods describes the influence of the Center East battle on the worldwide oil market on ‘Particular Report.’
ExxonMobil CEO Darren Woods mentioned there may be adequate provide within the international oil market to resist any provide disruption to Iranian exports.
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 line with the Vitality Info Administration (EIA).
Darren Woods, chairman and chief govt officer of ExxonMobil Corp. (Andrey Rudakov/Bloomberg through Getty Photos / Getty Photos)
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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 whole international demand, in line with Andy Lipow, president of consulting agency Lipow Oil Associates.
It is also a fraction of the oil that flows by way of the Strait of Hormuz. In 2024, the oil that flowed by way 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 worldwide 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 amenities and army 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 adequate provide within the international oil market to resist any provide disruption to Iranian exports. (REUTERS/Brendan McDermid/File Photograph / Reuters Images)
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Nonetheless, costs started to chill as export capability was spared within the assaults.
“I think quite purposefully, to not disrupt the oil supply,” 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 way of the Strait of Hormuz are affected, costs may climb to $100, in line with Lipow.
Retaliatory targets for Iran that would have the best influence on costs are oil tankers headed to the U.S. by way of the Strait of Hormuz, he added.
Ticker Safety Final Change Change % XOM EXXON MOBIL CORP. 114.02 +1.54
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Israeli missiles hit Iran’s Shahr Rey Refinery close to Tehran, which has a capability of 225,000 barrels per day, and the Shahran gas depot close to Tehran, Lipow mentioned.
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In whole, 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 Photos/AFP through Getty Photos / Getty Photos)
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.
