HOUSTON: Chevron Corp Chief Executive Michael Wirth said on Wednesday he expected oil and motor fuel prices to stay high but cautioned against limiting fuel exports to guarantee US supplies.
The CEO of the second-largest US oil producer also expects Russian oil volumes now reaching the global market to decline in the coming months as sanctions, tanker insurance costs and the departure of Western oilfield service firms weigh on exports.
The White House has not ruled out restrictions on fuel exports to ease soaring domestic prices, the US Department of Energy said last week. Global supplies for refined products are tight, in part due to sanctions imposed on Russia after its invasion of Ukraine and the closing of refineries.
“Restricting exports would be in my opinion an unwise move,” Wirth said at Bernstein’s Annual Strategic Decisions conference. “But I think it is something you can’t rule out.” Wirth predicted fuel prices and refining margins will rise further as China eases its COVID lockdowns, as international travel improves and fewer Russia barrels reach the market, possibly causing shortages.
“Somewhere in the world in the next few months you’ll start to see product shortages materialize,” said Wirth. “I think Europe is the obvious place.” He said the United States was also vulnerable if hurricanes affect production this summer.
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