Chevron Corporation (NYSE:CVX) CEO Mike Wirth said on Sunday that oil prices are likely to remain under “upward pressure” as the U.S.-Iran conflict continues to disrupt global supply.
Hormuz Crisis Hurting Supply and Inventory
On Sunday, in an interview aired on “Face the Nation” with Margaret Brennan, Wirth described the current situation as a structural shock to the global energy system, with critical supply routes, particularly the Strait of Hormuz, significantly disrupted. He noted, “The global economy consumes about 100 million barrels of oil every day, and about 20% of that moves through the Strait of Hormuz.”
He said stockpiles in tanks, ships, and strategic reserves have been reduced over the last couple of months, making the market less able to cushion shocks and leaving prices more exposed to supply interruptions.
Wirth said the quickest path to easing pressure is restoring movement through the Strait of Hormuz, arguing that the market cannot easily replace the volume affected. He added that even if flows restart quickly, rebuilding inventories and rerouting logistics would not be immediate.
He said new oil production will take time to come into the market. “You can’t turn on production at a moment’s notice. …
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