Chevron, ConocoPhillips Warn About “Critical Shortages” Of Oil, Soaring Prices And Demand Destruction
This morning, most of the world’s energy giants including Exxon and Chevron, reported stellar earnings as surging oil prices more than offset curtailed output. They also issued several loud warnings about the ongoing Hormuz blockage which is no closer to resolution. ConocoPhillips was first, warning of imminent “critical shortages” of oil for some nations as the Iran war that has crippled global energy flows enters its third month.
“The biggest challenge we’re about to face is that the markets sort of had a bit of a grace period initially when the tankers that left the Persian Gulf in late February were still on the water; now all of those have reached their destination,”
“If we don’t get supply reestablished, demand will have to come down across different sectors of the economy. That’s the big concern that everybody has as we try to avoid a scenario where that becomes extreme.”