On Tuesday, comments from Chevron’s CEO, Mike Wirth, provided reassurance to investors concerned about relatively weak oil prices. Wirth made optimistic statements regarding both the energy sector and the broader macroeconomic environment, bringing confidence to the company’s stakeholders. As a result, Chevron’s stock saw an increase of nearly 3% by the market’s close.
In an interview with CNBC, Wirth expressed confidence that the economy is not currently in danger, despite prevalent fears of a potential recession caused by ongoing trade disputes between the United States and several key trading partners. He stated, “There’s no signs that we see at this point that we are in or close to a recession.” However, he acknowledged that signs of slowing growth exist and emphasized the need for preparedness.
These remarks followed the International Monetary Fund’s (IMF) recent downgrade of its 2025 growth projection for the U.S. economy, adjusting it to 1.8% from an earlier estimate of 2.7%.
Regarding Chevron’s operations, Wirth anticipated continued softening in demand as a result of U.S. tariffs and OPEC’s decision to increase oil production. Nonetheless, he indicated that this would not significantly affect the company, which plans to maintain its current capital spending strategy.
Wirth and other leading figures in the energy sector have an inherent interest in remaining optimistic amidst the current challenges. Many in the industry, including Wirth, believe the sector is not facing an imminent crisis and that a resolution to the tariff disputes could lead to a strong recovery.
