In a Wednesday interview on CNBC's Squawk Box Europe, Chevron CEO Mike Wirth called it "unwise" for the Trump administration to advance a diesel export ban. "Export bans, be they in the U.S. or in other countries, actually take supply off the global market and they run the risk of making the situation worse," he said. He also stressed, "The U.S. has been a reliable supplier to the world at a time when it needs it." "And I think it would be unwise for the U.S. to create questions in the minds of our allies and our partners as to whether or not we will be there with reliable supply when times are difficult - and so, there are other options."
Policy signals have shifted. U.S. President Donald Trump has backed away from moving ahead with a diesel export ban following the G7's decision to tap emergency reserves for diesel and crude oil. He additionally expanded the permissible uses for lower-cost red-dyed diesel, aiming to reduce record-high fuel prices. A Monday evening executive order temporarily allows farmers and truckers to operate on red-dyed diesel - fuel that does not incur highway fuel taxes - and postpones those levies until year-end.
Asked about conditions heading into winter, Wirth called the set up "very serious." He noted the year began with elevated inventories across commercial tanks, government strategic reserves and even barrels at sea that had been under U.S. or EU sanctions. In recent months, he said, commercial stocks have been drawn down, strategic barrels released and those previously sanctioned cargoes cleared and delivered.
Rebuilding those cushions will not be quick. Earlier this week, Saudi Aramco CEO Amin Nasser warned that restoring global oil inventories may require as long as two years, cautioning the squeeze could intensify as the U.S.-Iran war continues.
Export restrictions on fuel reach domestic prices in both directions. Market Briefs covers energy policy free every morning.
Rising Middle East crude exports and a G7 emergency stockpile release have helped calm some nerves, but traders remain edgy as Saudi Arabia and Iran-backed Houthi forces trade strikes.
Chevron is leaning into Venezuela. "We have a good position there that we intend to grow, but that takes time and the amount of production that Venezuela can add over the next short period of time is dwarfed by the amount that is at risk in the Middle East."
Shares were last at 205.14, down 2.44 or 1.18% at 11:32 AM EDT. Over the last month the stock is marginally lower, but it is up over 36% year to date.
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