Chevron Chairman and CEO Mike Wirth said global oil supplies are tightening, potentially pushing Brent crude prices to $150–$160 per barrel within weeks [1].
These warnings signal a potential energy crisis that could trigger global inflation and fuel shortages. As geopolitical tensions rise in the Middle East, the stability of the world's most critical oil transit points is under direct threat.
Wirth discussed the risks during a Bloomberg Surveillance interview on Friday, citing the war in Iran and multiple attacks on vessels in the Strait of Hormuz this week [2]. He said the combination of falling global inventories and rising geopolitical risk is creating a volatile market environment.
According to Wirth, oil prices will face upward pressure in June and July as inventories continue to fall [3]. He said the tightening supply situation is the primary driver for the potential price surge to the $150–$160 range [1].
Beyond the price of crude, Wirth addressed the availability of fuel. He said physical oil shortages have already begun, and he expects Asia to feel the impact first [4]. This scarcity could eventually extend to gasoline supplies if the current trend of plunging inventories persists [5].
Wirth also commented on the role of Venezuela in the global market during his appearances, including a session at a Bernstein conference in New York [2]. The company's leadership highlighted how the interplay between regional conflicts, and production levels in South America, affects the broader supply chain.
Industry analysts are monitoring these developments as the Iran-Israel conflict continues to disrupt shipping lanes. The Strait of Hormuz remains a critical chokepoint, and further attacks could accelerate the timeline for the price spikes Wirth described [2].
“"We could see Brent trading in the $150‑$160 range within weeks because of the tightening supply situation,"”
The warning from a supermajor like Chevron suggests that the market may not have fully priced in the risks of the Iran-Israel conflict. If Brent crude reaches $160, the resulting increase in transportation and production costs would likely trigger a new wave of global inflation, particularly in energy-dependent economies in Asia.
