In an interview with Bloomberg, the executive pointed out the high volatility faced by the price of the raw material and its impact.
The prices of Petroleum they reach again maximums this Tuesday, as operators weigh supply limitations. Chevron CEO Mike Wirth predicted that prices will return to $100 a barrel.
In an interview with Bloomberg TV, The executive points out this level, not seen in more than a year. “The offer is shrinking, inventories are declining. These things they happen gradually and you can see them developing, so I think… the trends would suggest that we are certainly on the right path,” warns Wirth.
Wirth acknowledges that $100 oil could cause a “ballast” for economies from the United States and the rest of the world, as some market observers fear, MarketWatch reports.
“We have had prices of Petroleum relatively higher for most of this year and certainly for all of last year. The recession that everyone is talking about has not arrived. So I think the underlying drivers of the economy in the United States and, frankly, globally, remain quite healthy,” he adds.
Wirth assures that his expectations of long term oil pricesalthough he points out that the market has been volatile since the pandemic. “This has been a period of time where prices have been unpredictable and volatile and not what you would call mid-cycle,” she concludes.
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Oil: the price of the day
Oil prices rise this Tuesday fourth consecutive day, because the weak production US shale production increased worry due to the supply deficit derived from the extension of oil pumping cuts Saudi Arabia and Russia.
The futures of the benchmark Brent They were up 50 cents, or 0.53%, at $94.93 a barrel at 1116 GMT. US crude oil futures West Texas Intermediate They rose 94 cents, or 1.03%, to $92.42, after previously climbing more than $1 a barrel.
Prices have been rising for three consecutive weeks, and both benchmarks are around maximum of 10 months.
Source: Ambito
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