Chevron Warns of Oil Shortage Risk if Hormuz Strait Is Blocked
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Chevron CEO Mike Wirth warned that a closure of the Strait of Hormuz would quickly cause a significant global crude oil shortage. Speaking at a Milken Institute event, he noted that the waterway carries about 20% of the world's crude, and any blockade would lead to immediate physical market tightness.
Chevron CEO Mike Wirth warned that disruptions at the Strait of Hormuz could soon lead to a global crude supply shortage.
Speaking at a Milken Institute discussion, Wirth said if this vital waterway—which handles about 20% of the world's crude oil—is shut, the market will begin to see a clear physical shortage.
He added that the economies of various countries are likely to contract as demand adjusts to constrained supply, with Asia expected to bear the initial impact.
