Chevron CEO Mike Wirth said the prospect of oil hitting $100 a barrel is not out of reach in the coming months, pointing to recent market trends and global uncertainty.
Wirth appeared on FOX Business’ “The Claman Countdown” Friday, where host Liz Claman noted, “Oil hit $90 a barrel earlier this week, and you’re looking at Wall Street’s $100 a barrel forecast. by this summer, that suddenly doesn’t seem so high.”
International benchmark Brent crude hit $90 on Wednesday. On Thursday, the Wall Street Journal reported that analysts at Morgan Stanley had raised their summer forecast for Brent to $100, as had Goldman Sachs. Bank of America predicted it would hit $120 by July.
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Claman asked Wirth about his price outlook for the spring, to which he replied, “Could we see $100 oil? I think we could – we’re not far off right now, and a lot of it depends on the hard to predict things that could happen around the world.”
The managing director pointed to one particular factor, noting that “geopolitical concerns such as those related to Russia and Ukraine are once again creating nervousness in commodity markets.”
Claman then asked Wirth if his company had been contacted by the Biden administration in its campaign asking liquefied natural gas producers to help in case Moscow cuts off critical energy supplies to Europe amid conflict. .
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The CEO declined to say whether Chevron had any discussions with the White House, but said the company is “always planning for contingencies.”
“In this strong market that we’ve seen, all growers have an incentive to produce as much as they can because the demand is clearly there,” Wirth said.
The Biden administration has worked actively to impede oil and gas production in the United States while blaming producers for the continued increases in gas prices Americans have been paying since President Biden took office. Wirth says the price situation is simply a matter of supply and demand.
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“If we want to see lower prices, what we really want to see is more supply,” Wirth explained. “We need policies that encourage investment and supply, and this is a country that is an energy powerhouse.”
He added: “We are the largest oil and gas producer in the world, and that can go on for a long time to come if we are allowed to develop these resources responsibly.”