In an interview on Bloomberg TV, Chevron CEO Mike Wirth predicts that oil prices will soon reach the $100-a-barrel mark. Wirth believes that supply is tightening and inventories are drawing down, indicating a trend towards higher prices. He stated, “we are certainly on our way, we are getting close.”
The extension of supply cuts by major producers such as Saudi Arabia and Russia to the fourth quarter has supported this upward trend in oil prices. As OPEC+ members continue to curb output, the prospects of a supply deficit have caused prices to reach their highest level in 2023.
Wirth acknowledges that higher oil prices will have some impact on the US and global economy. However, he believes that the underlying drivers of the economy remain healthy. While the increase in oil prices may act as a drag on the economy, Wirth notes that thus far, it has been manageable.
Currently, Brent crude futures are at $94.40 a barrel, and US West Texas Intermediate crude futures are at $91.56 a barrel.
[Definitions:
– OPEC+ members: Refers to the alliance between OPEC (Organization of the Petroleum Exporting Countries) and non-OPEC producers who have agreed to coordinate their oil production.
Sources: Chevron CEO Mike Wirth’s interview on Bloomberg TV, Reuters]