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Chevron CEO Makes Dire Prediction About Oil Prices

The diesel market will stay tight into the winter, Chevron Chairman and CEO Michael Wirth warned.

“Markets are tight right now. Diesel, in particular, as we’ve seen here recently and likely to stay that way through the winter, I think,” he said during the third quarter earnings call.

With the ban on some Russian imports going into effect in the first quarter of 2023, the situation could become worse.

The ban will drive Russian energy products to reach farther markets with increased costs and logistics, he said.

Data collected by the Energy Information Administration (EIA) shows that diesel stockpiles are at their lowest level for October in records that date back to 2008.

The weekly data shows that the United States, as of Oct. 21, has 25.9 days of supply—down from 34.2 days of supply five weeks prior.

National Economic Council Director Brian Deese, a top adviser to President Joe Biden, told Bloomberg News last week that current diesel levels are “unacceptably” low and that “all options are on the table” to increase supplies.

Diesel prices are usually half a dollar higher than gas prices. However, the diesel market seems to have become tighter than the gasoline market since the beginning of this year.

The price difference between diesel and gas increased from about half a dollar to over $1.70 since January.

Diesel Playing Role of Gas

Two reasons caused the tight diesel market, Senior Vice President of the American Energy Alliance Dan Kish told The Epoch Times.

Consumers chose to travel less for shopping because of high gas prices, which drove up the demand for diesel-fueled transportation and diesel prices.

“A lot of people got priced out of gasoline or they’re just not driving as much because it’s more expensive. But they still need to get goods and instead of going into the grocery stores to buy things, they have them delivered. That increases demand for diesel,” he said.

Meanwhile, the refining capacity for distillate—including diesel, jet fuel, kerosene, heating oil, and fuel for ships—is dropping because more refineries are closing.

Oil companies are also investing more in biodiesel refining and reassigning their diesel refining capacities.

Kish is also expecting the coming winter to be harsh for Northeasterners who rely on heating oil.

“Winter is going to be very tough, especially for the Northeast,” he warned.

During the White House press briefing on Wednesday, John Kirby, National Security Council coordinator for strategic communications, didn’t answer a question about how to increase the supply of diesel in the United States.

The Biden administration is doing whatever it can to help European people who will face “a long, cold winter,” he said.

30 Comments
  • Louis Galmarini says:

    Any tiime the CEO, (read: global elitist), of a major corporation ‘warns’ you of something. what they’re really doing is TELLING you what THEY ARE GOING TO DO. There have been MANY PURPOSELY MANUFACTURED crisis in America. Especially w/i the past 50 years. Specific examples:

    1). The OPEC gas crisis of November 1973, which lasted into the ’80’s.

    2). 9/11: Which was an inside job, purposely masterminded by the global elites, using America’s enemy to facilitate the destruction of 2 skyscrapers and cause over 3,000 deaths. The objective: To get the Patriot Act passed, giving the government unfettered access into private people’s lives.

    And the last hoax, perpetrated on the world-wide by the global elites to help facilitate their NWO/Agenda 21 schedule of events:

    3). The COVID-19 virus was real. The propaganda exaggerating it lethal effects (of up to 90% exaggerated), WERE NOT. THEY WERE PURPOSELY MANUFACTURED, along w/ the format for determining ’cause of death’ which changed to EVERYONE hospitalized after May 21, 2020 being tested for COVID, and if found postive ANY TIME during or after their hospital stay, the ’cause of death’ was automatically deemed COVID-19. Not the medical condition they initially went into the hospital w/, (heart attack, diabetes, stroke, respiratory failure, etc.) – COVID-19.

  • Ray says:

    The SOB wants to help foreigners, but not the American home base. What kind of president does that , A stupid one.

  • DDearborn says:

    Hmmm

    The “explanation” for the increase in diesel fuel prices isn’t just illogical, flying in the face of the facts and common sense, it is just plain silly.

    In a nutshell, 150 Million+ Americans drive significantly less thus consuming far less gasoline and this somehow is driving the price of Diesel thru the roof? Baloney!

    In reality, the result has been that Oil companies ended up with a too much oil. Consequently there is an huge surplus of unrefined crude available which should have been, and could have been EASILY, QUICKLY, AND CHEAPLY refined into diesel fuel and #2 Home heating oil (BECAUSE BOTH REQUIRE FAR LESS REFINING THAN GASOLINE!) Instead, the oil companies have been conspiring with the Democrat Party in control of the Federal Government to intentionally shut down production of diesel and Home Heating oil to drive up prices that otherwise would have been falling right now…

    There is so much excess crude floating around that the Oil Cartels have BEEN FORCED cut production to prop up prices which again, should be MUCH LOWER RIGHT NOW…

    WAKE UP PEOPLE BIDEN AND THE DEMOCRATS ARE AIDING AND ABETTING YOUR BEING CONNED AND RIPPED OFF!

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