In an interview on Bloomberg TV, Chevron CEO Mike Wirth predicts that oil prices will soon reach the $100 per barrel mark. Wirth believes supply is tightening and inventories are shrinking, indicating a trend toward higher prices. He stated: “we are certainly on our way, we are getting closer.”
The extension of supply cuts by major producers such as Saudi Arabia and Russia into the fourth quarter has supported this upward trend in oil prices. As OPEC+ members continue to reduce production, prospects of a supply shortfall have led to prices reaching their highest level in 2023.
Wirth acknowledges that higher oil prices will have some impact on the U.S. and global economy. However, he believes the economy’s underlying drivers remain healthy. While the rise in oil prices may act as a drag on the economy, Wirth notes that it has been manageable so far.
Currently, Brent crude oil futures are at $94.40 per barrel, and West Texas Intermediate crude oil futures are at $91.56 per barrel.
Sources:
– Interview with Chevron CEO Mike Wirth on Bloomberg TV.
– Reuters
