Chevron’s CEO said the energy system today is more fragile than the early stages of the U.S. and Israel war, and that precautionary reserves of oil and fuel are being depleted.

According to Reuters, Mike Wirth said on Tuesday at an energy intelligence conference in London that as the conflict enters its eighth month, the foundations of the oil and gas market are becoming tighter and the floor price of oil is gradually moving higher.

He added that the delivered price of physical oil in Asia is now closer to $150 per barrel than $100, the level at which Brent futures contracts trade.

The market for refined products has tightened in recent months, and the prices of key fuels such as gasoline and diesel have risen much higher than the crude oil from which they are produced.

This situation has led governments to examine measures to protect consumers and the industry, including releasing 100 million barrels of crude oil and gasoline from strategic reserves that Group of Seven countries agreed on last week.