Overview
- Mike Wirth, speaking Monday at a Milken Institute event, said physical oil shortages will begin worldwide as the Strait of Hormuz remains shut.
- The strait is a vital shipping lane that carries about one-fifth of the world’s seaborne crude, so its closure blocks a major source of oil and fuel.
- He said the cushions that softened the blow are being drained, including commercial stockpiles, government reserves, and shadow-fleet tankers that dodge sanctions.
- He likened the disruption to the 1970s oil shocks, a scale underscored by Reuters reporting that Spirit Airlines went out of business over the weekend as jet fuel costs jumped.
- In the United States, he noted the last scheduled Gulf shipment was being offloaded at the Port of Long Beach, a marker that strain is reaching American supply lines while Asia is hit first and Europe next.