Chevron CEO warns of fragile energy markets amid Middle East conflict

Chevron CEO Mike Wirth has highlighted the growing fragility of global energy markets as the Middle East conflict stretches into its eighth month. Wirth noted that oil and fuel supply buffers are shrinking, leaving the market more vulnerable to disruptions. He pointed out 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, showing a significant gap between futures and physical markets.

The situation is further complicated by tight refined fuel markets, which have driven gasoline and diesel prices higher than the cost of the crude oil used to produce them. In response, governments are considering measures to protect consumers and industries. Last week, the G7 agreed to release 100 million barrels from strategic reserves amid concerns over supply shortages.

Wirth cautioned against export bans, arguing that restricting supply could worsen market pressures. He emphasized that the United States is closely linked to global energy markets and warned that a diesel export ban may not benefit American consumers as intended. His comments come as governments and energy companies monitor the impact of geopolitical tensions on global energy security.