{"id":32730,"date":"2026-03-23T18:58:06","date_gmt":"2026-03-23T18:58:06","guid":{"rendered":"https:\/\/www.europesays.com\/iran\/32730\/"},"modified":"2026-03-23T18:58:06","modified_gmt":"2026-03-23T18:58:06","slug":"chevrons-ceo-says-oil-prices-are-still-too-low-strait-of-hormuz-closure-not-fully-priced-in","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/iran\/32730\/","title":{"rendered":"Chevron’s CEO says oil prices are still too low, Strait of Hormuz closure not ‘fully priced in’"},"content":{"rendered":"

Oil and natural gas futures prices\u2014despite trading 60% higher since before the Iran war\u2014remain well below the physical supply shortages facing Asia and spreading around the world that will take many months to replenish, the chairman and CEO of Chevron<\/a> said March 23.<\/p>\n

The large CERAWeek by S&P Global conference is attracting many of the world\u2019s energy leaders from around the world in Houston this week and a top theme is the potential disconnect between energy markets and the greatest global energy supply shock ever<\/a> with the effective closure of the Strait of Hormuz, which typically funnels nearly 20% of the world\u2019s crude oil and liquefied natural gas each day.<\/p>\n

\u201cThere are very real physical manifestations of the closure of the Strait of Hormuz that are working their way around the world through the system that I don\u2019t think are fully priced in,\u201d said Chevron CEO Mike Wirth.<\/p>\n

Asia already is facing major supply shortages that cannot be undone just by the releases of strategic, emergency supplies. That is why many Asian countries have implemented energy conservation mandates, work-from-home efforts<\/a>, school closures, and more. Wirth also cited the huge supplies of fertilizer for agriculture and helium for semiconductors that flow through the strait offshore of Iran.<\/p>\n

\u201cThe fundamentals are very tight out there,\u201d Wirth said. \u201cThe markets are trading on scant information.\u201d<\/p>\n

\u201cPhysical supply changes don\u2019t respond immediately,\u201d he added. \u201cEven when strait reopens at some point, it will take time.\u201d<\/p>\n

Oil prices dipped notably March 23 when President Donald Trump said he would delay any attacks on Iranian energy infrastructure by five days to allow for greater negotiations, pushing back his March 23 deadline for Iran to reopen the strait. Iran has in turn said it would attack more energy facilities in neighboring Gulf countries if the U.S. followed through on Trump\u2019s threats, further escalating the war. And, later in the day, Iranian officials said no negotiations have taken place, accusing Trump of pushing \u201cfake news\u201d to lower prices.<\/p>\n

Iran accused of \u2018economic terrorism\u2019<\/p>\n

Iran\u2019s counteroffensive strategy of attacking the oil and gas supplies of its neighbors is a form of unprovoked terrorism that will not be accepted, said Sultan Ahmed Al Jaber, the United Arab Emirates minister of industry and advanced technology, and group CEO of ADNOC, the Abu Dhabi National Oil Company.<\/p>\n

The UAE has cut its oil production by more than 50% this month, while Iraq and Kuwait have made even deeper reductions. Al Jaber canceled his scheduled appearance in Houston because of the war, but he provided a video message. Saudi Aramco<\/a> CEO Amin Nasser also canceled his trip.<\/p>\n

\u201cWeaponizing the Strait of Hormuz is not an act of aggression against one nation. It\u2019s economic terrorism against every nation,\u201d Al Jaber said. \u201cAnd no country should be allowed to hold Hormuz hostage. Not now, not ever.\u201d<\/p>\n

He accused Iran of \u201cchoking the throat\u201d of the \u201cglobal economy.\u201d<\/p>\n

Kicking off CERAWeek, U.S. Energy Secretary Chris Wright, a former oil and gas executive, said the Iran war is a \u201cconflict that we simply couldn\u2019t kick down the road one more administration.\u201d<\/p>\n

Wright called the war \u201cshort-term disruption now, but to end a multi-decadal problem.\u201d<\/p>\n

The International Energy Agency agreed this month to release 400 million barrels of oil from emergency storage, including 172 million barrels from the U.S. Strategic Petroleum Reserve.<\/p>\n

Wright said the U.S. began withdrawing oil from the SPR on March 20 and that the U.S. will release at least 1 million barrels each day from the SPR for the next few months. The total global release would equate to nearly 3 million barrels daily, he said.<\/p>\n

Still, that does not offset more than 11 million barrels of oil that remains offline, even with Saudi Arabia and the UAE redirecting as many barrels as they can through the Red Sea<\/a> and other outlets.<\/p>\n

\u201cOil remains the most important energy source in the world,\u201d Wright said. \u201cNo oil, no modern world.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Oil and natural gas futures prices\u2014despite trading 60% higher since before the Iran war\u2014remain well below the physical…\n","protected":false},"author":2,"featured_media":32731,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[1394,777,102,34,101],"class_list":{"0":"post-32730","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-strait-of-hormuz","8":"tag-chevron","9":"tag-energy-industry","10":"tag-hormuz","11":"tag-iran","12":"tag-strait-of-hormuz"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@iran\/116280026937874545","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/32730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/comments?post=32730"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/32730\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media\/32731"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media?parent=32730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/categories?post=32730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/tags?post=32730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}