The company’s chief executive said prices would respond to what was described as an unprecedented supply disruption tied to the Strait of Hormuz shutdown.
Exxon’s chief executive said about 15% of the company’s output has been impacted by the closure of the Strait of Hormuz, a key global oil shipping chokepoint. The executive also said prices would respond to the supply disruption, which was characterized as unprecedented. The statement points to immediate pressure on energy markets because disruptions in Hormuz can restrict crude flows and quickly influence global pricing.