Chevron CEO Mike Wirth, as S&P Global’s CERAWeek opened in Houston this week during the U.S.-Israeli war in Iran, said regional disruptions may outlast market assumptions. Theme of the global conference March 23-27 is “Convergence and Competition: Energy, Technology and Geopolitics.” Wirth said the market may be underestimating the scale and duration of the disruption to the energy supply chain, and it will take time to rebuild inventories even if Strait of Hormuz reopens.
“There are very real physical manifestations of the closure of the Strait of Hormuz that are working their way around the world and through the system,” he said, “that I don’t think are fully priced into the futures curves on oil… How quickly that production can actually come back online is an uncertainty that we’re going to have to deal with… It’s going to take some time to come out of this.”