Oil Buffers Depleted, Higher Prices Ahead Warns Chevron CEO
Chevron CEO Mike Wirth warns that depleted oil buffers could lead to higher prices in the coming months. The conflict between Iran and other countries has already pushed up crude prices, with Brent futures set for an 8% weekly gain.
The buffers that limited price increases earlier this year have been 'played out', Wirth said at a University of Texas at Austin energy conference. He believes it's harder to envision a scenario where prices soften quickly, and the risks remain to the upside over the next few months.
The average price of diesel in the US hit $6 per gallon for the first time on Thursday, as the Iran war combined with Ukrainian attacks on Russian refineries squeezed supply. Chevron's operations in Kazakhstan have seen fewer impacts since the administration spoke with Ukraine about its attacks on oil infrastructure in Russia's Black Sea.