Chevron CEO Warns of Fragile Energy Markets Amid Middle East Conflict

Chevron CEO Mike Wirth has warned that the global energy system has become increasingly fragile as the Middle East conflict approaches its eighth month. Speaking at the Energy Intelligence Forum in London, Wirth highlighted that oil and fuel supply buffers are shrinking, making the market more vulnerable to disruptions.

Wirth noted that while Brent crude futures are trading around $100 per barrel, the actual price of physical oil in Asia is closer to $150 per barrel. This discrepancy underscores the growing gap between benchmark futures and real-world market conditions. Refined fuel markets have also tightened, driving up gasoline and diesel prices significantly above the cost of the crude oil used to produce them.

In response to rising fuel costs, governments are considering measures to protect consumers and industries. Last week, the G7 agreed to release 100 million barrels from strategic crude oil and diesel reserves due to concerns about supply shortages. Discussions around potential US export restrictions have also emerged.

Wirth cautioned against export bans, arguing that restricting supply could worsen market pressures. He emphasized that the United States remains closely linked to global energy markets and warned that a diesel export ban may not benefit American consumers as intended.