Chevron CEO Warns of Significant Upside Risk for Oil Prices Amid Depleting Supplies

Chevron CEO Mike Wirth warns of significant upside risk for oil prices in the coming months. This is due to dwindling supply buffers, which have been depleted after several countries released their crude oil reserves into the market since the Iran war began in late February.

The US had also allowed oil from sanctioned countries to be sold into the market, but these supplies are now running low. Wirth believes it's hard to see oil prices coming down soon and that higher prices remain a significant risk in the next few months.

Brent crude oil prices are projected to rise by around 8% in a week, while the average diesel price in the US reached $6 per gallon for the first time last Thursday. The Iran war has coincided with Ukrainian attacks on Russian oil refineries, further tightening supplies.