Proactive Investors - A barrel of oil could indeed surpass US$100 a barrel 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 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 respectively sat 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 the 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.