Chevron CEO Mike Wirth warned of imminent physical global oil shortages during a Milken Institute event. The ongoing closure of the Strait of Hormuz serves as the primary driver for the supply disruption.
Wirth stated that global economies must slow down as demand adjusts to the reduced supply. Asian economies will likely feel the initial impact due to their heavy reliance on Gulf oil production.
European markets are expected to face shortages following the disruption in Asia. Wirth noted that the current tightening of supplies and rising prices could mirror the severity of the 1970s oil crisis.