Chevron CEO Predicts Energy Demand Softens — ‘These Markets Become More Balanced’

Chevron CEO Mike Wirth said on Thursday’s broadcast of FBN’s “The Claman Countdown” that the demand for energy is declining as the economy appears to be headed for a slowdown.

According to Wirth, oil supply could still be threatened with Chinese pandemic restrictions loosening or air travel recovering, but he said the tight supply situation underway would find balance.

“Well, I think over the prior several months, the concerns about inflation, supply tightness, and the risks created the conflict in Ukraine created a real anxiety about future supplies, and that drove prices up,” he said. “n the last few weeks, I think increasingly we see concerns about a recession and an economic slowdown being much more in the forefront of people’s thinking. And I think that would suggest energy demand softens. These markets become more balanced. And I think prices reflect that. So, last 30 days, we’ve seen prices come down. I think that’s good for the economy. It’s good for consumers.”

“I would say, Liz, that there are still risks out there,” Wirth continued. “We don’t have China fully back. There’s a lot of China that’s under pandemic restrictions. Air travel is not fully back, particularly international air travel. So there’s some upside in demand. And we still do have a tight supply situation. So I would say the risks skew to the upside even as we’ve seen prices retreat.”

Follow Jeff Poor on Twitter @jeff_poor

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