Depleted Oil Buffers Fuel Higher Price Outlook

Chevron CEO Mike Wirth warned that higher oil prices are likely in the coming months due to depleted crude buffers. Speaking at a University of Texas at Austin energy conference, Wirth stated that buffers built up during the Iran war have been exhausted.

The average price of diesel in the US hit $6 per gallon for the first time on Thursday, as the Iran war and Ukrainian attacks on Russian refineries squeezed supply. Brent crude futures remain on track for a weekly gain of 8%.

Chevron's operations in Kazakhstan have been less affected by the conflict than expected, Wirth said. The company has seen fewer impacts since the US administration spoke with Ukraine about its attacks on oil infrastructure in Russia's Black Sea.