- Chevron CEO warns of rising fuel and energy prices due to depleted global oil buffers
- Emergency petroleum reserves used since Iran war outbreak have now been exhausted
- U.S. relaxed oil storage limits on sanctioned nations’ ships to ease supply constraints
Chevron CEO Mike Wirth on Friday issued a warning, stating that there is a significant upside risk for fuel prices in the upcoming months due to the depletion of global crude oil buffers.
Speaking at an energy conference at the University of Texas at Austin, Wirth clarified that the emergency shock absorbers that initially controlled worldwide prices after the Iran war broke out in late February have now "played out", reported Reuters.
Countries have released some petroleum reserves to the market since the war started in late February, and the United States has also relaxed limits on oil kept on ships from sanctioned nations that are floating at sea.
"It's harder ​to envision a scenario where prices soften quickly," he reportedly said. "I think the risks remain to the upside over the next few months."
Due to supply constraints caused by the Iran war and Ukrainian attacks on Russian refineries, the average price of diesel in the United States reached $6 per gallon for the first time on Thursday. Brent crude prices are still expected to increase by 8% every week.
Wirth stated that the corporation will use all of the money from its three current joint ventures in Venezuela to finance its anticipated $7 billion investment to grow there.
Chevron and the Venezuelan government signed a new contract this week that will allow the company to develop two additional oil locations and more than double its output to roughly 600,000 barrels per day by 2031.
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