Chevron CEO warns: Global oil reserves have been depleted
Chevron CEO Mike Wirth warns that global commercial and strategic oil reserves have been depleted, making the system more vulnerable to disruptions. According to him, the high inventories from early 2026 have dwindled due to the war in Iran, and no significant relief in diesel prices is expected before 2027. In the US, the average diesel price has reached a record $6.53 per gallon, while in Israel the price of gasoline stands at 7.77 shekels per liter.
Chevron CEO Mike Wirth warned in an interview with CNBC that global commercial and strategic oil reserves have been significantly depleted, leaving the system more vulnerable than ever to disruptions. He stated that at the beginning of 2026, the world enjoyed high inventories, but since the start of the war in Iran, they have steadily dwindled. Companies have used their commercial inventories, governments have released strategic reserves, and even oil under sanctions has reached buyers. Wirth described the situation as "very serious" and emphasized that releasing inventories is only a temporary solution, as the underlying problem is limited flow from the world's major production areas. The pressure is particularly felt in diesel prices: in the US, the average price has reached a record $6.53 per gallon, and in California it has crossed the $8 threshold. In Israel, the price of gasoline stands at 7.77 shekels per liter, and diesel at 12 shekels. According to the International Energy Agency, the diesel market is expected to remain tight until 2027. The White House has attempted several measures to lower prices, including releasing 100 million barrels from emergency reserves and an agreement to supply diesel from Russia, but experts say these are temporary steps.