Mar. 23 at 7:53 PM
Chevron CEO Mike Wirth said the oil futures market has not fully priced in the supply disruption caused by the Strait of Hormuz closure. He noted that trading is based on “scant information” and perception, while actual physical supply is tighter than futures suggest.
Oil prices fell after President Donald Trump signaled willingness to reach a deal with Iran, delaying planned strikes. Despite this, Wirth emphasized that significant volumes of oil and gas are currently not reaching the market, with a more severe physical impact than in past disruptions.
Around 20% of global oil supply previously passed through the strait, and flows have dropped sharply due to attacks on shipping and regional infrastructure damage. Gulf producers have reduced output due to export constraints, and some countries are holding inventories domestically.
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