A barrel of oil could indeed surpass US$100 for a second year running, according to Chevron Corporation (NYSE:CVX) chief executive Mike Wirth.
Speaking with Bloomberg, Wirth commented that “it sure looked like” oil prices would soon creep past the US$100 mark for the first time since July last year.
“We’re certainly moving in that direction,” he said.
“Supply is tightening, inventories are drawing [...] the trends would suggest that we’re certainly on our way. We’re getting close.”
Following sustained production cuts by OPEC+ nations this year, including the likes of Saudi Arabia, West Texas Intermediate (WTI) and Brent Crude prices have risen steadily since late June.
Come Tuesday, Brent sat at roughly US$95 a barrel, as per Trading Economics data, while WTI hovered around the US$92 mark.
Given each was close to US$70 a barrel in July, speculation has built that oil could indeed pass US$100 this year, following last year’s stint above that mark in the wake of the war in Ukraine.
OANDA market analyst Craig Erlam explained that scaled-back production by OPEC+, which accounts for 40% of global supply, was now significantly impacting prices.
This “should force a rethink over the coming months”, he added, given the move had now played out in inflating prices.