Chevron CEO Warns Oil Shortages Within Weeks as US Distillate Stocks Hit Lowest Since 2003
Chevron Chief Executive Officer Mike Wirth warned oil shortages could emerge within weeks and said US gasoline prices may rise considerably over the next two months as tight inventories meet peak summer demand. Exxon has separately warned global oil inventories are nearing critically low operational levels.
The warning comes as US petroleum stocks fell another 17.4 million barrels, including a 12.4 million-barrel drop in crude, while gasoline and diesel inventories declined by 2.6 million and 2.1 million barrels, respectively. Distillate fuel inventories have dropped to their lowest level since 2003, the West Coast is the tightest region, and TotalEnergies CEO Patrick Pouyanne said the market could remain in imbalance for more than a year.
From the sources (16 posts)
@ericnuttallNeil Chapman, SVP of Exxon this morning at the Sanford Bernstein Strategic Decisions Conference perhaps going a little off corporate script:
@oilandenergy"We're approaching unheard of inventory levels. I mean, really, really low levels."
@staunovoChevron CEO warns oil prices to jump over summer as supplies dwindle Blockade in Strait of Hormuz has removed up to 13mn barrels a day from global markets and drawn down ‘shock absorbers’ #oott
@oilheadlinenewsExxon warns oil inventories will hit dangerously low levels in weeks, forcing prices to shoot higher
@hfi_researchWe are ~9 million bbls away from hitting a storage level that's the equivalent of living paycheck to paycheck for gasoline and distillate. Once we get there, even a minor disruption (any sort of outage) will result in gasoline lines at gas
@hfi_researchAnd we are going into peak summer demand season + hurricane. You get any disruption on refinery throughput or a pipeline, boom, gasoline shortage. We are living on the edge now.
@hfi_researchRT @ericnuttall: Neil Chapman, SVP of Exxon this morning at the Sanford Bernstein Strategic Decisions Conference perhaps going a little off…
@lisaabramowicz1Chevron's Mike Wirth said we're weeks away from oil shortages. He sees US gasoline prices potentially rising considerably in the next two months. Listening to market strategists and then talking to commodity producers is an exercise in cogn
@oilheadlinenewsChevron's Mike Wirth said we're weeks away from oil shortages. He sees US gasoline prices potentially rising considerably in the next two months. - Bloomberg
@lizannsondersRT @lisaabramowicz1: US distillate fuel inventories have dropped to the lowest level since 2003.
@rory_johnstonMany have noted the steep decline in US total petroleum (ex-NGL) inventories. Here's the regional decomposition: West coast tightest, Midwest diving fast, East coast grinding lower. US Gulf Coast still holding decent stocks, mostly for s
@rory_johnstonHelps explain why US jet fuel inventories are the only stocks riding high right now compared to gutted stocks of gasoline and diesel.
@macroedgeresChevron CEO warns of oil shortages within weeks, Total CEO says market may remain in ‘imbalance’ for over a year as inventory levels continue to collapse #MacroEdge
@oilandenergyChevron and Exxon are warning that global oil inventories are nearing critically low operational levels. Exxon says Brent could spike to $150-$160/bbl once stockpiles hit the floor, with demand destruction becoming the only market balancing
@oilheadlinenewsTotalEnergies CEO Pouyanne: Oil imbalance may last until 2027 due to stockpile demand
@alaliqasemThis morning on Bloomberg Surveillance, Chevron’s CEO Mike Wirth warned of gasoline price spikes and physical oil shortages — weeks away. The futures market reacted with a shrug. Someone is catastrophically wrong. Let me show you who. 🧵