Chevron (CVX.US) CEO: Diesel export ban may push up prices in parts of the US

The Zhitong Finance App learned that Chevron (CVX.US) CEO Mike Worth said on Tuesday that the US ban on diesel exports may cause prices to rise in some parts of the US and cause problems for other countries that rely on US supply.

Voss said at the London Energy Intelligence Forum: “You may see some upward pressure on prices in parts of the US. And I think this would send a very bad signal, especially for our allies, because America has always been a reliable supplier in times of crisis.”

Later last week, after the G7 and its partners agreed to release part of emergency fuel reserves to curb surging oil prices, US President Donald Trump said he would not ban US diesel exports. Trump's statement means he has abandoned his previous position of considering restrictions on diesel exports, temporarily eliminating one of the major supply risks faced by the global refined oil market.

The coordinated release of reserves comes at a time when the global diesel market is facing one of the worst supply constraints in recent years. According to Kpler's data, before the Middle East conflict broke out, the Middle East accounted for about 19% of global diesel exports, North America about 15%, and Russia about 11%. However, due to the blockage of energy transportation in the Middle East and the decline in Russian refining and exports, the two major sources that originally accounted for nearly one-third of the world's supply contracted at the same time.

Voss also said that demand for oil and gas will continue to grow after the end of the Persian Gulf War, and his company may join an oil pipeline consortium from Iraq to the Mediterranean.

Voss said that as technology advances, Chevron now drills more oil wells with fewer rigs than ever before.