Darren Woods, the new chairman and CEO of Exxon Mobil, told CNBC the oil giant is not making plans based on current crude price rises.
“Our view on oil prices is there’s still a lot of uncertainty in the marketplace, so while we have seen the prices go up in the short term, we’re not building our investment campaign based on the assumption that those prices are going to be there forever,” the 52-year-old Woods said in an interview that aired on “Squawk Box” on Thursday.
OPEC compliance with an international output cut agreement reached late last year has recently helped support the oil market.
Over the past year, U.S. prices, as measured by West Texas Intermediate crude, have surged more than 50 percent to around $53 per barrel.
“OPEC has very low production costs and so they have a lever they can pull in the choices they can make there. So what you’re seeing in the U.S. is just a response to whatever that market price is,” Woods said.
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