Chevron’s Mike Wirth expects oil prices to come “close” to $100 a barrel, the chief executive of the second-largest U.S. energy producer said in an interview on Bloomberg TV.
“Supply is tightening, inventory is going down… trends suggest we’re on the right track, we’re getting closer (to the $100 a barrel mark),” Wirth said Monday.
Major producers Saudi Arabia and Russia have extended their supply cuts through the fourth quarter, pushing oil prices to their highest in 2023 amid the prospect of a deficit as OPEC+ members continue to cut production.
Wirth said he sees some impact from higher oil prices on the U.S. and global economies, but the underlying drivers remain healthy.
“It is a burden on the economy, but one that the economy has been able to absorb so far.”
Brent crude futures rose 50 cents, or 5%, to $94.43 a barrel on Monday, while U.S. West Texas Intermediate crude futures rose 71 cents, or 0.8%, to $91.48 .