Oil price drop: Chevron CEO warns risks remain skewed towards upside as prices plummet

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Chevron CEO Michael Wirth issued a fresh oil warning after the price of crude fell below $100 (£84.26) per barrel. Prices have dropped partially due to fears of a recession and while concerns around crude demand continue to rise.

Mr Wirth told CNBC’s Evolve Global Summit on Wednesday: “The tightness in supply hasn’t gone away.”

He added: “I think it’s great for the economy that prices have moderated, but I also see the risks remaining skewed towards the upside.”

Mr Wirth went on to highlight how recent weakness in oil has come as a result of high prices damaging demand.

He explained: “Now the real challenge for the globe, I think, is to see the investment in supply … as we come through whatever form of economic slowdown we see what the supplies are to support growth going forward.”

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Prices have taken a turn following Vladimir Putin’s invasion of Ukraine at the end of February.

West Texas Intermediate even traded at a post-2008 in March at $130 (£109.60) per barrel.

The change in prices is also thought to have enabled gasoline prices to hit $5 (£4.21) per gallon last month for the first time on record.

US inflation has also soared, reaching its highest level since 1981 to reach 9.1 percent in June.

The cost of living crisis has electorally damaged Joe Biden’s administration in the upcoming November elections.

Mr Biden has since called on the industry, both at home and abroad, to raise its output.

Following a letter from the President which called on oil executives to increase refining capacity, Chevron said the 46th President’s administration has “largely sought to criticise, and at times vilify, our industry”.

However, Mr Wirth revealed his company is still working with the Government in Washington.

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He said: “What we need to see is policy that encourages responsible development of all types of energy resources here and policy that recognizes we need a pragmatic balance between economic prosperity, energy security, and environmental protection.”

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