Chevron CEO warns of thinning oil supply buffers as prices near $150

Chevron CEO Mike Wirth has raised concerns about tightening global oil and refined fuel markets as supply buffers diminish. Speaking at the Energy Intelligence Forum in London, Wirth noted that the energy system is now more fragile than earlier in the US-Israeli war, which has now entered its eighth month. He pointed out that the landed price of physical oil in Asia is nearing $150 per barrel, significantly higher than the $100 per barrel where Brent oil futures are trading.

The market has also seen increased tightness in refined products, driving prices of key fuels like gasoline and diesel much higher than the underlying crude they are derived from. This has prompted governments to consider measures to protect consumers and industries from soaring fuel costs. Last week, the G7 agreed to release 100 million barrels of crude and diesel from their strategic reserves in response to potential US export bans.

Wirth warned that restricting supply, such as through an export ban, would constrain supplies at a time when the world needs them most. He also cautioned that a diesel ban might not help US consumers, especially with midterm elections in focus.