Mike Wirth, Chairman of the Board and CEO of Chevron Corporation
| Photo Credit:
MIKE BLAKE

Chevron Chairman and
CEO Mike Wirth said on ​Monday that physical shortages in oil
supply would ‌begin appearing around the world because of ​the
closure of the Strait of ⁠Hormuz, through which 20% of global
crude supply passes.

Economies will begin shrinking, first in Asia, as demand
adjusts ‌to reduced supply with the strait still closed because
of the US-Israeli war ‌with Iran, Wirth said during a
discussion ‌sponsored ⁠by the Milken Institute.
“We will start ⁠to see physical shortages,” Wirth said, noting
that surplus supply in commercial markets, tankers in so-called
shadow fleets avoiding sanctions, ​and national strategic
reserves ‌were being absorbed.

“Demand needs to move to meet supply,” he said. “Economies
are going to have to slow.”

Asia is most heavily dependent ‌on the Gulf’s oil production
and refineries, with ​Europe likely to be affected next, Wirth
said.

Wirth noted that the United ⁠States, a net exporter of
crude, would be less affected than other parts of the globe, ‌but
eventually the effects would be felt there as well. He pointed
out that the last scheduled shipment of oil from the Gulf was
being offloaded at the Port of Long Beach, which supplies Los
Angeles and southern ‌California.

The overall effect of the Hormuz closure is “potentially as
big ​as in the 1970s,” Wirth said. Two major supply disruptions
in that decade ⁠shook economies around the world, leading to fuel
rationing ⁠and long lines at retail pumps.

Because of the Hormuz closure, Spirit Airlines ‌went out of
business over the weekend as the cost of jet fuel surged ​amid
tighter supplies.

Published on May 5, 2026

ACUTAAS CHEMICALS – CONCALL HIGHLIGHTS

Battery Chemicals Expansion

– Phase1 capex completed at Jhagadia 

– 2000MT capacity for VC and FEC 

– Fully tied with 3-year contracts 

– Production already commenced 

– Revenue ramp through FY27 

– Phase2 capex by Q1FY27 

– Third product capex ongoing 

– Two new products planned FY27 

CDMO Pipeline

– 4 products validated commercially 

– Under regulatory approval stage 

– ₹50–100Cr peak revenue each 

– Ramp-up expected by FY28 

– 10-year supply contract secured 

– Strong global client relationship 

Growth Outlook

– FY27 revenue growth ~25% 

– Consistent decade-long track record 

– Three growth engines driving business 

– Pharma CDMO largest contributor 

– Battery chemicals ramping up 

– Semiconductor recovery underway 

Margins & Capex

– EBITDA margin ~34.5–35% 

– FY27 capex ~₹90Cr planned 

– Includes spillover and maintenance 

– R&D expansion under consideration 

R&D Expansion

– 10x capacity expansion planned 

– Multi-sector R&D capabilities 

– Pharma, battery, semiconductor focus 

– Long-term innovation pipeline 

Management Commentary

– Battery and semi become key engines 

– Independent growth by FY28 expected 

– CDMO ramp steep post commercialization 

– Sustained growth visibility 

Final Takeaway

– Strong multi-engine growth model 

– High-margin specialty chemicals focus 

– Execution key for next phase 

Disclaimer

– Not a buy/sell recommendation

Crude oil futures traded lower on Tuesday morning following reports that two US-flagged vessels have transited through the Strait of Hormuz.

At 9.59 am on Tuesday, July Brent oil futures were at $112.98, down by 1.28 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $104.12, down by 2.16 per cent. May crude oil futures were trading at ₹9950 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹10057, down by 1.06 per cent, and June futures were trading at ₹9587 against the previous close of ₹9687, down by 1.03 per cent.

In a post on X, US Central Command said: “US Navy guided-missile destroyers are currently operating in the Arabian Gulf after transiting the Strait of Hormuz in support of Project Freedom. American forces are actively assisting efforts to restore transit for commercial shipping. As a first step, 2 US-flagged merchant vessels have successfully transited through the Strait of Hormuz and are safely headed on their journey.”

In their Commodities Feed for Tuesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said markets may find some relief on Tuesday following US President Donald Trump’s overnight comments suggesting the conflict could continue for another two to three weeks. However, markets are likely to view this with considerable scepticism, given the recent escalation and the repeated extensions of projected timelines for ending hostilities since the conflict began.

“We are seeing the first signs of the ceasefire between the US and Iran breaking down amid a re-escalation in the Persian Gulf. ICE Brent rallied 5.8 per cent on Monday to settle above $114 a barrel,” they said.

The US struck a number of Iranian boats. There are claims that Iran struck a US warship, which the US has denied. In addition, Iran has resumed attacks on infrastructure in neighbouring countries, with the UAE intercepting several Iranian missiles, while Fujairah port was hit by a drone. This port is important for UAE oil exports. It is situated outside the Strait of Hormuz, which allowed oil exports to continue (and, in fact, to increase) despite the war and blockade of the Strait, they said.

Prior to the ceasefire, Fujairah was targeted several times. Even so, oil loadings continued largely unaffected, with only temporary halts. LSEG data shows that crude oil exports from Fujairah totalled nearly 1.7 million barrels a day in April.

They said that this re-escalation comes at a time when the US has started guiding commercial vessels through the Strait of Hormuz, under ‘Project Freedom’. Two US-flagged commercial vessels have passed through the Strait of Hormuz under the plan, according to the US. Clearly, continuation of ‘Project Freedom’ risks further escalation. Any relief from stranded vessels making their way through the Strait will be temporary, with very few inbound vessels moving into the Persian Gulf, they added.

May natural gas futures were trading at ₹272.40 on MCX during the initial hour of trading on Tuesday against the previous close of ₹274.50, down by 0.77 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), May turmeric (farmer polished) contracts were trading at ₹16098 in the initial hour of trading on Tuesday against the previous close of ₹15988, up by 0.69 per cent.

May jeera futures were trading at ₹19925 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹20025, down by 0.50 per cent.

–EOM–

Published on May 5, 2026