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.”
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