The blockade of the Ormuz Strait. Chief Chevron warns against global oil shortage

Chevron CEO Mike Wirth warned that the prolonged blockade of the Ormuz Strait could turn from a price crisis into a real oil shortage on the world market. According to him, stocks are running out, which have mitigated the effects of supply disruptions over the past months.

Chevron is one of the largest energy companies in the world, operating throughout the oil and gas chain – from mining to selling these raw materials. It is headed by Mike Wirth, an oil industry manager for years, whose statements are closely followed by raw materials markets and economic analysts.

The crisis is no longer just a matter of price

During the panel under the Milken Institute, General Manager Wirth estimated that the world was entering a stage where the market would no longer react solely to price increases. The problem is the physical lack of raw material. As he pointed out, the current security buffers – trade stocks, strategic reserves and deliveries made by so-called. ‘Shadow fleet" – they are quickly consumed.

Chevron's chief put it plainly: the world will begin to see the physical shortages of oil. This means that demand will have to adapt to a lower supply. In practice, this could mean slowing down production, increasing transport costs and pressure on entire supply chains.

Asia will be the first to feel the effects

The most vulnerable is Asia, heavily dependent on energy resources from the Gulf region. If oil, finished fuels and petrochemicals are not available at the same time, the impact will include transport, industry, shipping and the chemical sector.

The pressure is to reach Europe. The United States, despite being a better net exporter of oil, will also be affected by this crisis. Wirth pointed out that the last regular deliveries from the Persian Gulf are being unloaded at Long Beach Port, California. This is meant to symbolize the breakup of existing, predictable marine routes.

Strait Ormuz – strategic bottleneck

The Ormuz Strait has remained one of the most important points on the map of world energy trade for decades. This narrow water flows through vast amounts of oil and liquefied natural gas. If the transition remains blocked for a long time, the market loses not only part of the supply but also a sense of stability.

Wirth compared the scale of the current threat to the oil crises of the 1970s. In his opinion, the world can enter a period of high energy costs, weaker economic growth and more difficult decisions for central banks, which will have to fight inflation for longer.

If these predictions are confirmed, the world will quickly remember that oil is not an abstract position in the listing table. It's fuel for ships, trucks, refineries, chemical plants and all logistics. Therefore, the crisis for Middle East can very quickly descend from great geopolitics to the level of transport bill, fuel litre prices and production costs. Polish media are already writing about rising oil prices, which shows that the effects of tensions in the Persian Gulf are beginning to be felt much closer to the daily economy.