Chevron Corp. (NYSE:CVX) CEO Mike Wirth said Monday that oil and gas futures prices remain disconnected from the physical supply shortages rippling through global markets following the effective closure of the Strait of Hormuz, even as prices have climbed roughly 60% since the Iran war began.
‘Fundamentals Are Very Tight’
Speaking at CERAWeek by S&P Global in Houston, Wirth said the supply disruptions from the strait’s closure, which typically channels close to 20% of the world’s daily crude oil and liquefied natural gas, have not been fully reflected in market prices.
“The fundamentals are very tight out there,” he said. “The markets are trading on scant information.”
Wirth noted that critical flows of fertilizer for agriculture and helium for semiconductor manufacturing also pass through the strait, compounding the supply crunch.
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