Chevron Warns Refining Shortages Will Keep Fuel Prices High

Chevron and ExxonMobil have issued warnings about global refining shortages that are driving up fuel prices. The companies attribute the supply chain disruptions to conflicts in Russia and the Middle East, which are limiting refining capacity. Chevron's CEO expects tight fuel markets and supply constraints to persist into the third quarter and beyond.

Chevron is a major integrated energy company with operations across several regions, including upstream production, refining, and marketing. The company's comments highlight the impact of physical bottlenecks in refining on pump prices and sector revenues.

Prolonged tightness in refining capacity can keep fuel prices high even if crude oil trades in a stable range. Chevron is trading at $193.18 compared to an analyst target of $216.75, a discount of about 11% to expectations.