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Chevron CEO Mike Wirth told CNBC’s “Squawk Box” on Tuesday that he does not think the United States is close to a recession, although there are signs that growth is slowing.
“There’s no signs that we see at this point that we are in or close to a recession,” Wirth said in the interview. “There are signs that growth may be slowing and we have to always be prepared for that.”
The threat of tariffs by President Donald Trump is raising concerns about a global slowdown, which in turn is affecting lowered expectations for oil demand, Wirth said, but there is no evidence in the data of economic weakness. He instead attributed the recent fall in oil prices, to below $64 per barrel, to faster-than-expected supply increases by OPEC+ and non-OPEC producers.
U.S. crude oil prices have fallen about 11% since Trump announced global tariffs on April 2, and on Tuesday the International Monetary Fund cut its growth for the U.S. this year to 1.8%, down from 2.7% in 2024, citing trade tensions.
Wirth did say U.S onshore oil production is likely to pull back if prices hit $60 per barrel, but not offshore production.
“That’s an area where if we were to be at a $60 price or even lower you’re likely to see activity pull back in this sector and you’ll see the production response over a few months,” Wirth said. “That’s what we should watch, not so much the deep water activity.”
“The effects that we feel are likely to be more the macroeconomic effects as they flow through the economy,” Wirth added. “The bigger issues would be what would it mean for growth, and global trade and how does that evolve.”