Chevron CEO Warns of Tightening Oil Markets and Risks of U.S. Export Ban

Chevron CEO Mike Wirth warned that the global energy system is growing increasingly fragile as the Middle East conflict persists. Speaking at the Energy Intelligence Forum in London, Wirth noted that the underlying fundamentals of the oil and gas market are tightening. The landed price of physical oil in Asia has surged to nearly $150 per barrel, significantly higher than the current Brent crude price of around $100 per barrel.

Wirth also highlighted the tightening supply of refined products, which is driving up prices for key fuels like gasoline and diesel. This has led G7 governments to release 100 million barrels of crude and diesel from their strategic reserves. Wirth cautioned against a potential U.S. ban on diesel exports, stating that such a move would constrain supplies when they are most needed and could result in higher prices for consumers in some parts of the U.S.

He emphasized that the U.S. is not independent of global markets and that a diesel ban would send a negative signal to allies who rely on American supplies. Wirth also predicted that demand for oil and gas will continue to grow even after the end of the Iran war. Additionally, he mentioned that Chevron could join a consortium for an Iraq-to-Mediterranean oil pipeline.