Chevron Warns of Physical Shortages as Global Oil Inventories Drain at Record Pace
Chevron Chief Executive Mike Wirth warned that some economies are starting to face supply outages and that physical shortages are likely to emerge as surplus commercial supplies, tankers in so-called shadow fleets and national strategic reserves are absorbed. The warning comes as world oil inventories fall at a record pace, with the Iran war and the near-closure of the Strait of Hormuz eroding the buffer that normally cushions supply shocks.
The latest comments broaden an earlier U.S.-focused squeeze into a global stock draw. Earlier this week, analysts said U.S. refined petroleum stocks were falling at the fastest rate on record for this time of year, with combined gasoline, diesel, jet fuel and other refined-product inventories down 45 million barrels since the end of February and distillate stocks lower by more than 18 million barrels, the weakest seasonal level in more than two decades. Analysts say the rapid depletion is leaving governments and industry with fewer options to absorb the loss of more than a billion barrels of supply and could keep markets vulnerable even after the conflict ends.
From the sources (9 posts)
@jkempenergyU.S. DISTILLATE STOCKS have fallen to the lowest for the time of year for more two decades as closure of the Strait of Hormuz creates a worldwide shortage of diesel and similar fuels. Since the war began, distillate inventories have deplete
@oilandenergyGlobal oil inventories are collapsing at record pace, with stocks near 8-year lows and falling toward 98 days of demand as Hormuz disruptions drain buffers. #Oil #EnergyCrisis #OOTT #Geopolitics
@jkempenergyU.S. refined petroleum stocks slump at fastest rate on record U.S. refined oil stocks are falling at the fastest rate on record for the time of year as refiners prove unable to meet strong export demand stemming from the closure of the Str
@staunovoThe world has burned through oil inventories at a record speed as the Iran war throttles flows from the Persian Gulf, eating into the very buffer that protects against supply shocks. The rapidly shrinking stockpiles mean that the risk of e
@macroedgeresChevron CEO: "We're starting to see risks of supply outages in some of these economies” #MacroEdge
@oilheadlinenewsChevron CEO: “We will start to see physical shortages,” Wirth said, noting that surplus supply in commercial markets, tankers in so-called shadow fleets avoiding sanctions, and national strategic reserves were all being absorbed, according
@oilheadlinenewsWorld Oil Inventories Are Falling at a Record Pace
@joshyoungGot oil?
@joshyoungMike's take: