Popular oil major, Chevron has expressed concern about consequences of supply hike by the Organization of Petroleum Exporting Countries (OPEC). The company recently revealed that increased oil supply from OPEC and its allies will keep putting pressure on crude prices in 2026.
Speaking during an interview with Bloomberg TV, Chevron Corp. Chief Executive Officer Mike Wirth said that as the pressure on crude prices continues to mount next year, liquefied natural gas prices will most likely fall later in the decade.
“Oil prices in 2026 are likely to feel more pressure than LNG prices. There’s a lot of oil supply that’s coming back from the OPEC+ countries that have been holding supply back,” he said.
Recall that Chevron correctly predicted the drop in oil prices in the second half of 2025 two months ago.
Today, the company announced a five-year plan to concentrate on profitability over production growth through 2030.
Wirth stated that a portfolio has been built to cope with every possible outcome of the business.
“We’ve built a portfolio that will withstand the cycles of this business,” he continued.
Chevron is expecting strong demand increases for liquefied natural gas all over the world, but pictures lower prices at the end of the 2020s due to a surge in supply, especially from the Gulf Coast and the Middle East.
“There’s a period of time when it would appear we’re going to see more supply coming into the market than demand will be able to absorb. That probably results in lower spot prices,” he added.
