The CEO of the American oil giant Chevron warned Wednesday that it would be “unwise” for the Trump administration to move forward with a ban on diesel exports, saying the policy risks worsening the supply situation.
“Export bans, whether in the United States or other countries, actually reduce supply to the global market and risk making the situation worse,” Chevron CEO Mike Wirth told CNBC’s “Squawk Box Europe” in an exclusive interview on Wednesday.
“The United States has been a reliable supplier to the world at a time of need,” he continued. “And I think it would be unwise for the United States to raise questions in the minds of our allies and our partners about whether or not we will be there with a reliable supply when times get tough — and so there are other options.”
His comments come as rising Middle East crude exports and the emergency release of G7 stockpiles appear to have helped ease supply fears, although energy market participants remain jittery as Saudi Arabia and Iran-backed Houthi forces exchange attacks.
The U.S.-Iran war has severely disrupted shipping in the Strait of Hormuz, a narrow waterway that typically carries about 20 percent of the world’s oil and liquefied natural gas reserves, sending shockwaves through the global economy.
A sign displays prices for unleaded gasoline and diesel fuel at a Chevron gas station in Bay Harbor Island, Florida, United States, Monday, June 22, 2026.
Bloomberg | Bloomberg | Getty Images
US President Donald Trump, who cooled the idea of authorizing a ban on diesel exports after G7 countries agreed to release diesel and crude oil from their emergency reserves, recently authorized the wider use of cheaper red diesel as part of a campaign to drive down fuel costs, which are at record lows.
Trump signed an executive order in the United States on Monday evening temporarily allowing truckers and farmers to use red-tinted diesel – which is exempt from taxes on highway fuels – and deferred related taxes on the fuel until the end of this year.
Duty-free diesel is typically used by agricultural equipment, construction equipment, trucks and other off-road vehicles. It is therefore exempt from a tax of 24.4 cents per gallon applied to diesel fuel sold for road transportation.
The energy system “more vulnerable to disruption”
Asked about the fragile global inventory situation heading into winter, Chevron’s CEO described the situation as “very serious.”
“We started this year with high inventories. High commercial inventories held by companies, high inventories of strategic stocks held by governments around the world and actually large inventories on the water, particularly US or EU sanctioned barrels,” Wirth said.
“Over the past few months, we have seen commercial stocks decline, strategic stocks being released and those sanctioned barrels being released and allowed for delivery as well,” he continued.
“These are all buffers in the system that bought us time, but they have been exhausted, so we are currently at much lower inventory levels, which makes the system more vulnerable to disruption.”
Saudi Aramco CEO Amin Nasser said earlier this week that it would take up to two years to replenish global oil stocks, warning that pressure on supplies could worsen further as the war between the United States and Iran drags on.
Venezuela Outlook
Chevron, which has long operations in Venezuela, recently pledged to more than double its oil production in the South American country over the next five years.
As part of a $7 billion investment, Chevron announced earlier this month plans to increase the country’s production to 600,000 barrels per day by 2031, from about 280,000 bpd currently.
Chevron shares so far this year.
“Longer term, I think Venezuela can be part of a more secure energy system. Venezuela is coming out of a relatively low starting point – there hasn’t been a lot of investment in the country,” Wirth said.
“We have a good position there and we intend to grow, but it takes time and the amount of production Venezuela can add in the next short period is dwarfed by the amount that is threatened in the Middle East,” he added.
Shares of the Houston-based company are down slightly over the past month, but the stock is up more than 36% year to date.
— CNBC’s Anniek Bao and Spencer Kimball contributed to this report.
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