The price of oil shot up drastically on Monday, with the highest percentage gain in history, after it was reported that Saudi Arabia’s oil facilities had been attacked over the weekend.
Chevron’s CEO Michael Wirth weighed in on the situation on CNBC’s “Closing Bell” on Monday and said, “Perhaps the market had grown a little bit comfortable with risks that we never became comfortable with.
These events demonstrate that those risks are real.”
Energy stocks, including Chevron, were soaring after the drone strike on Saudi Arabia’s oil facilities had wiped out about half of the country’s daily crude production.
According to Wirth, these risks are “a feature” of Chevron’s business and “while you can never predict when an event like this might occur, you always need to be prepared.”
According to Bloomberg News reported it could take weeks before the national oil company, Saudi Aramco, brings back the majority of its oil output.
“If there’s a company that can rebound quickly from something like this, it’s Saudi Aramco,” Wirth assured.
President Trump tweeted, “Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!”
Disclaimer: We have no position in Chevron Corporation (NYSE: CVX) and have not been compensated for this article.