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Despite the expected increase in oil prices to $100 per barrel, the economy is anticipated to be able to endure the impact.


Sep 18, 2023

Oil prices are steadily rising and are projected to reach $100 per barrel, according to Chevron CEO Mike Wirth. He attributes this increase to ongoing supply constraints but believes that the economy can handle it. Wirth stated in an interview with Bloomberg that the underlying dynamics are still quite healthy. The rise in oil prices has been significant, with a nearly 30% increase since July and hitting a high of $91.36 per barrel. Additionally, gas prices at the pump have also been trending higher, with the national average reaching $3.88 per gallon. Wirth explains that the combination of supply constraints, including increased production from Saudi Arabia and Russia, along with robust demand, is driving the rise in oil prices. He further predicts that prices will continue to move towards the $100 per barrel mark. Despite the potential negative impact of high gas prices on consumer sentiment, Wirth believes that the economy has been able to withstand these higher costs throughout 2022. He points out that although oil prices have been relatively high this year, an anticipated recession has not materialized. This suggests that the fundamental drivers of the economy, both in the United States and globally, are still robust. Chevron, valued at $320 billion, holds the position of the second-largest oil company in America, following Exxon Mobil.

By Editor

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