Chevron: Limited inventories may expose the market to unexpected supply disruptions
Oil prices rose on Tuesday following industry executives cited concerns regarding a lack of spare capacity in the market and uncertainty regarding Russian supplies as demand recovers from China, the world’s largest crude importer.
Brent crude futures rose 40 cents, or 0.5%, to $86.58 a barrel by 0154 GMT, following settling 0.4% higher on Monday.
US West Texas Intermediate crude reached $80.76 a barrel, up 30 cents, or 0.4%, following rising 1% in the previous session, according to Archyde.com.
Brent prices are set to rise for the sixth consecutive session, the longest period of gains since May 2022, supported by hopes for demand recovery in China and with the increase in new refining capacity in Asia and the Middle East, and more crude being refined.
Chevron Chief Executive Mike Wirth said ships carrying Russian crude and products now have to sail longer distances to reach non-sanctioned markets while oil stocks and supplies are limited, leaving the global market vulnerable to any unexpected supply disruption.
