Major gas company CEO says ‘supply is tightening’ & consumers will see higher prices... - The US Sun

Major gas company CEO says ‘supply is tightening’ & consumers will see higher prices | The US Sun

Major gas company CEO says ‘supply is tightening’ & consumers will see higher prices

THE chief executive officer of Chevron has provided a bold analysis on oil prices - and it could mean more pain at the pump.

Chevron's Mike Wirth recently gave an interview to Bloomberg about the global fuel supply and his outlook.

While he maintained that drivers remain in overall good shape, he did forecast higher oil prices in the months to come.

Wirth pointed to increasingly smaller available sources of supply.

“Supply is tightening, inventories are drawing," Wirth explained.

Thanks to the tightening, Wirth sees oil getting close to $100 a barrel as a strong possibility.

While there are various different sources of oil, Wirth was referring to the most important and cited benchmark: Brent Crude Oil.

Brent Crude is currently going for $93.83 a barrel.

Brent Crude oil plays a major role in the creation and pricing of the gasoline used in cars.

The last time Brent Crude hit $100 was August of 2022.

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The all-time price was $147.50 in July of 2008.

While Wirth sees rising prices as a concern, his overall outlook is positive.

“It’s a drag on the economy, but one that thus far the economy has been able to tolerate," he said.

PAYMENT PAIN

High gas prices are a major contributor to the inflation that has ravaged American consumers over the past couple of years.

While prices are rising slower than at inflation's peak during the summer of 2022, costs of certain goods are still stubbornly high.

Also, even when inflation declines, the new high prices do not come down unless there is deflation, which often accompanies a recession.

To make matters worse for consumers, The Federal Reserve has aggressively hiked interest rates in order to cool inflation.

While the strategy may be working, higher interest rates translate into higher mortgages, car payments, and credit card payments.

One caveat is that they also mean higher interest payments for savers.

The Federal Reserve paused its rate hikes at its last meeting but signaled more hikes are to come.

Millions of Americans will also have to contend with more debt payments very soon.

The moratorium on student debt repayment ends this month, and in October borrowers must begin paying down their student loans for the first time since the onset of the COVID-19 pandemic.

Those amounts will be higher than many anticipated due to a court ruling.

President Biden's plan to forgive up to $20,000 of student debt for millions of Americans was overruled by the Supreme Court over the summer.

Yet, many Americans will receive payments to help ease the pain of inflation and debt.

SSI recipients will get their second check of September this week.

And many states have sent or will send rebate checks to millions of residents.