Chevron CEO Warns Depleted Crude Oil Buffers Could Spark Higher Prices

Chevron's CEO, Michael Wirth, has stated that depleted crude oil buffers could lead to higher prices. The company operates several major oil fields and refineries around the world, including the massive Tengiz oilfield in Kazakhstan.

Since the war began in late February, countries have released some crude stockpiles to the market, and the US has lifted restrictions on oil stored on ships floating at sea from countries under sanctions. Those buffers have now been 'played out', Wirth said while speaking at a University of Texas at Austin energy conference.

'It's harder to envision a scenario where prices soften and quickly,' he added, saying that 'I think the risks remain to the upside over the next few months.' The average price of diesel in the US hit $6 per gallon for the first time on Thursday, as the war against Iran, combined with Ukrainian attacks on Russian refineries, squeezed supply.

Brent crude futures remain on track for a weekly gain of 8%. Chevron will fund its planned $7 billion investment to expand in Venezuela entirely with cash generated by its three existing joint ventures in the country. Last week, Chevron signed new contract terms with the Venezuelan government to expand to two new oil areas and more than double output to about 600,000 barrels per day by 2031.