Chevron CEO Warns Oil Prices May Rise Despite Trump's Optimism

Chevron's CEO Mike Wirth recently delivered a stark assessment of the global oil market. Speaking at an energy conference, he stated that the shock absorbers that helped contain crude prices after the U.S.-Iran war began in late February have largely been exhausted.

This leaves prices more likely to climb than fall in the months ahead, according to Wirth. The loss of spare capacity became more acute after Yemen's Houthi forces struck Saudi Arabia's East-West crude pipeline, a critical artery that had been bypassing the Strait of Hormuz. This disruption left an estimated 2.5 million barrels per day of supply in limbo.

Wirth noted that the Trump administration had also discussed Ukraine's drone strikes on Russian energy infrastructure, and that Chevron has since seen fewer disruptions at its Tengiz oilfield in Kazakhstan. The White House has already deployed multiple tools to bring prices down, but Wirth argued that these cushions are now gone.

Pump prices remain elevated, with Americans paying roughly $97 billion more for fuel since the Iran war began. Diesel crossed $6 per gallon for the first time on September 10, and gasoline has climbed back to about $4.32 a gallon after briefly dipping below $4 during the summer.