Chevron CEO Warns Oil Prices May Rise as Buffers Deplete

Chevron CEO Mike Wirth warned that depleted oil buffers could lead to higher prices. Speaking at an energy conference in Texas, he said that the buffers that limited price increases earlier in the Iran war have been 'played out.'

The buffers were released from countries' stockpiles and the US lifted restrictions on oil stored on ships floating at sea from sanctioned countries. Wirth said it's hard to envision a scenario where prices soften quickly, predicting risks remain to the upside over the next few months.

Diesel prices in the US hit $6 per gallon for the first time on Thursday, and the average price of oil is on track for an 8% weekly gain. Chevron operates the massive Tengiz oilfield in Kazakhstan and has seen fewer impacts from Ukrainian attacks on Russian refineries since the US spoke with Ukraine about the issue.