Chevron Corporation (CVX.US) Chairman and Chief Executive Officer Mike Wirth said that amid the ongoing blockade of the Strait of Hormuz, physical oil shortages will begin emerging globally. Economies will need to adjust demand due to reduced supply, with contraction expected to first appear in Asia.He noted that commercial market inventories, sanction-evading shadow fleets and strategic reserves of various countries are being gradually depleted. Demand must adjust to adapt to reduced supply, and economic growth will inevitably have to slow. Asia is most dependent on Persian Gulf crude oil and refineries, with Europe likely to be affected subsequently. As a net exporter of crude oil, the United States will be less impacted, but will ultimately feel the shock as well. He specifically pointed out that the last scheduled shipments of oil from the Persian Gulf are currently being unloaded at the Port of Long Beach in California.Related NewsMichigan Consumer Sentiment Prel for May in the United States is 48.2, lower than the previous value of 49.8. The forecast was 49.5.He believes the scale of the impact from the Strait of Hormuz blockade could be comparable to the oil crisis of the 1970s. (fc/w)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
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