Chevron CEO Warns of Elevated Oil Prices Amid Depleted Supply Buffers

Chevron CEO Mike Wirth warned that oil prices may remain elevated due to depleting supply buffers. According to Reuters, Wirth stated it's 'harder to envision a scenario where prices soften and quickly' after the initial price shock from the U.S.-Iran conflict.

The cushion provided by releasing crude from stockpiles and easing restrictions on sanctioned crude has largely been depleted, Wirth said. As a result, oil prices have surged more than 50% since the war began in the Middle East, with Brent crude trading at $104.4 per barrel for November deliveries.

Chevron's operations in Kazakhstan's Tengiz oilfield and its expansion plans in Venezuela remain unaffected by the conflict. The company's $7 billion investment in Venezuela will be funded entirely by cash generated from existing ventures.