Oil Industry Warns Trump Of Potential Fuel Price Surge Within Weeks/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Oil industry leaders are warning the Trump administration that declining petroleum inventories could trigger a sharp increase in fuel prices within weeks. The ongoing disruption in the Strait of Hormuz has forced countries to rely heavily on stored oil supplies, rapidly reducing global inventories. Industry executives and analysts caution that continued shortages could send crude oil prices significantly higher during the summer.

---

Oil Inventory Crisis Quick Looks

• Energy executives warn inventories are reaching critical levels.
• Strait of Hormuz disruptions continue to impact global oil flows.
• Companies are increasingly drawing from storage reserves.
• U.S. gasoline prices remain elevated above pre-war levels.
• Industry leaders predict further fuel price increases this summer.
• Crude oil inventories have fallen for eight consecutive weeks.
• Strategic Petroleum Reserve releases are helping offset shortages.
• Some analysts warn Brent crude could reach $150-$160 per barrel.
• White House disputes claims it received private inventory warnings.
• Market experts say current inventory declines are historically unusual.

---

Oil Inventory Crisis Deep Look

Senior oil industry executives are warning that global petroleum inventories are shrinking at an alarming pace as disruptions in the Strait of Hormuz continue to restrict one of the world’s most important energy corridors.

Industry leaders have reportedly raised concerns with members of the Trump administration, cautioning that the ongoing drawdown of stored oil and fuel supplies could lead to significant price spikes in the coming weeks if supply disruptions persist.

Growing Concerns Over Shrinking Inventories

According to industry officials, countries around the world have increasingly relied on stored crude oil, gasoline, diesel and jet fuel to compensate for reduced shipments from the Middle East.

One executive described current inventory levels as approaching critical thresholds.

“We’re at dangerously low levels already,” said one industry executive who discussed private conversations with government officials.

The executive added, “We have shared those concerns at the highest levels of government about what’s coming in mid-to-late June. … I hope they are paying attention to inventories right now. You’re hitting tank bottom.”

The warnings come as energy markets continue adjusting to disruptions that have dramatically reduced traffic through the Strait of Hormuz.

Strait Of Hormuz Remains Central Issue

The Strait of Hormuz is one of the world’s most strategically important shipping routes, handling roughly one-fifth of global oil flows under normal conditions.

Since the conflict began earlier this year, shipping through the narrow waterway has been severely restricted.

Although some producers have redirected shipments through alternative routes and pipelines, much of the lost supply has not been fully replaced.

As a result, nations have increasingly turned to strategic reserves and commercial storage facilities to meet demand.

White House Pushes Back

Administration officials dispute claims that senior policymakers have received private warnings about dangerously low inventories.

A White House official dismissed reports suggesting that top administration figures had been specifically alerted.

“Politico’s anonymous sources are wrong,” the official said.

An Energy Department spokesperson similarly stated that while officials remain in regular contact with industry leaders, there have been “no such discussions” regarding inventory concerns.

At the same time, administration officials continue emphasizing strong domestic production and alternative supply measures as reasons for confidence.

Industry Executives Predict Higher Prices

Several major energy companies have publicly acknowledged growing market risks.

Executives from major producers, including Exxon Mobil and Chevron, have warned investors that continued inventory declines could significantly raise oil prices.

Neil Chapman, Exxon’s senior vice president, said crude prices could rise dramatically if inventories continue falling.

“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, then you’ll see prices shoot up,” Chapman said.

Some industry observers believe Brent crude oil could climb to between $150 and $160 per barrel if supply pressures intensify.

U.S. Fuel Prices Already Elevated

American consumers have already felt the impact of reduced global supplies.

According to AAA data, the national average gasoline price stood at approximately $4.26 per gallon this week.

That remains significantly higher than levels recorded before the conflict disrupted Middle East energy exports.

While prices have eased somewhat from recent peaks, industry executives caution that additional increases may be unavoidable if inventories continue shrinking.

“The administration has already been told that,” a second oil company executive said regarding industry concerns about future price spikes.

Inventory Data Shows Ongoing Decline

Recent government data illustrates the scale of the drawdown.

Commercial U.S. crude oil inventories fell by roughly 8 million barrels last week, marking the eighth consecutive weekly decline.

Current stockpiles now sit below historical averages.

The federal government also released an additional 8 million barrels from the Strategic Petroleum Reserve, bringing emergency reserves close to some of their lowest levels in recent years.

Meanwhile, gasoline inventories remain below average, while diesel and jet fuel supplies have also tightened.

Overall U.S. petroleum inventories have declined by more than 50 million barrels since the conflict began.

Analysts Warn About Long-Term Risks

Market analysts say one reason oil prices have not risen even more dramatically is because governments and companies have relied heavily on stored supplies.

However, many caution that this strategy cannot continue indefinitely.

“I’ve never seen inventory numbers fall so much so quickly,” said Jim Burkhard, vice president and global head of crude oil research at S&P Global Energy.

“It is stunning.”

Analysts note that many inventories are approaching operational minimums, meaning supplies may soon become unavailable for practical use even if barrels technically remain in storage.

What Happens Next?

Much of the market’s outlook depends on whether shipping activity through the Strait of Hormuz returns to normal.

President Donald Trump has repeatedly suggested negotiations could eventually restore energy flows, but recent comments indicating disruptions could continue through the summer have raised concerns among traders and industry leaders.

Energy strategist Helima Croft warned that declining inventories represent a hidden threat that may not yet be fully reflected in market prices.

“You may not see immediately on the horizon the actual economic challenges that will be coming,” Croft said.

If supply disruptions continue into the fall, analysts warn that shortages could spread beyond fuel markets and affect broader industrial production, transportation and consumer prices worldwide.

More on US News