The buffers are gone: Chevron chief sees higher crude prices ahead

Chevron CEO Mike Wirth said on Friday that oil buffers that limited crude price increases earlier in the Iran war have been depleted, and the conflict could lift prices further over the next few months.

Since the war began in late February, countries have released some crude stockpiles to the market, and the US also lifted restrictions on oil stored on ships floating at sea from countries under sanctions. Those buffers have now been, "played out," Wirth said while speaking at a University of Texas at Austin energy conference.

"It's harder to envision a scenario where prices soften and quickly," he said. "I think the risks remain to the upside over the next few months."

The average price of diesel in the US hit $6 per gallon for the first time on Thursday, as the Iran war, combined with Ukrainian attacks on Russian refineries, squeezed supply. Brent crude futures remain on track for a weekly gain of eight per cent.