Chevron CEO Mike Wirth and other oil executives warn that the prolonged Strait of Hormuz closure amid the Iran war has drained fuel-market buffers. Wirth said he sees little reason for relief; U.S. diesel hit a reported record $6.52 a gallon on Sept. 22, and gasoline was $4.49.
The Wall Street Journal reported that global commercial fuel inventories have been falling for more than six months and strategic crude reserves have limited scope for further use. A September attack disabled Saudi Arabia’s East-West pipeline; analysts estimate the disruption sidelined at least 2.5 million barrels of oil a day.
The National Energy Assistance Directors Association projects that households using heating oil will pay 31.3% more to heat their homes this winter. The article also says diesel prices are rising as U.S. farmers enter the fuel-intensive harvest season, and businesses may pass higher costs through supply chains.
