Chevron CEO Says Shortages in Oil Supply Will Begin Appearing
Mike Wirth said commercial stocks, shadow fleets and strategic reserves are being absorbed as Asia faces the first growth hit.
- Chevron Chairman and CEO Mike Wirth warned Monday that physical oil shortages will soon emerge worldwide due to the ongoing closure of the Strait of Hormuz, which carries about 20% of global crude supply amid the US-Israeli conflict with Iran.
- Wirth described the disruption's potential scale as "potentially as big as in the 1970s," noting that surplus supply in commercial markets, "shadow fleets" tankers, and national strategic reserves are being rapidly absorbed.
- Asia, heavily reliant on Middle Eastern oil, faces the initial impact followed by Europe, while Spirit Airlines ceased operations over the weekend amid soaring jet fuel costs.
- Goldman Sachs reported that global oil inventories are accelerating their depletion, while the United States offloads its final scheduled Gulf shipment at the Port of Long Beach in California.
- The United States and Iran exchanged fire on May 4 as military escorts began protecting vessels through the strait, threatening the fragile ceasefire as analysts expect inventory declines to extend despite record U.S. exports.
17 Articles
17 Articles
Chevron CEO says economies 'are going to have to slow' as Strait of Hormuz closure disrupts oil supply
Chevron CEO Mike Wirth on Monday said that shortages in the oil supply chain will start appearing around the world because of the closure of the Strait of Hormuz amid the Iran war.Wirth made the comments during a discussion at the Milken Institute's Global Conference about global economic growth and said that economies in Asia will be the first to shrink as demand adjusts to the disruption of oil supplies."We will start to see physical shortages…
Physical Oil Shortages Are Beginning to Appear, Says Chevron Boss
Chevron CEO Michael Wirth said on May 4 that physical shortages in oil supply would begin appearing around the world because of the closure of the Strait of Hormuz. “We will start to see physical shortages,” Wirth said during a discussion sponsored by the Milken Institute. “Demand needs to move to meet supply. Economies are going to have to slow.” Asia is most heavily dependent on the Gulf’s oil production and refineries, with Europe likel…
Chevron CEO forecasts oil-supply shortages that will begin constracting economies worldwide
Wirth said economies will begin shrinking, starting with Asia and then Europe would follow, as demand responds to rising prices. The U.S. would be shielded from the worst of it, he said, but not entirely.
Coverage Details
Bias Distribution
- 50% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
