Exxon Mobil CEO: Oil could be much cheaper

Says that oil would be between $40 and $45 a barrel if risk of disruption were less; also says governments should address climate change.

HOUSTON (Reuters) — U.S. crude prices would be between $40 and $45 a barrel if risks of supply disruption were not in the market right now, Exxon Mobil Chief Executive Rex Tillerson said on Tuesday.

“Absent a lot of the risk volatility … that’s probably $10-$15 a barrel of risk premium that the commodity trading markets are reflecting,” Tillerson told reporters at an energy conference in Houston.


“I would say the underlying price is more like $40 or $45 a barrel if you didn’t have the risk premium,” he said.

Exxon is the world’s biggest oil company.

Reuters