Exxon Mobil CEO Rex Tillerson said the current spike in oil prices is a temporary reaction to the events in Libya and will stop soon.
Tillerson said he wasn’t “losing sleep” over oil supply because the company has not observed an impact in demand.
“If you have a physical supply disruption that is significant, something beyond Libya’s volume, which was about 1.5% of global production, then certainly you would expect that there could be a response in the price to that. I don’t anticipate that happening,” said Tillerson.
The events in Libya are not powerful enough to cause the fundamental supply and demand problems the country was seeing two and a half years ago when oil was over $145 a barrel, according to Tillerson.
His comments were made at the company’s annual presentation to analysts today in which he rolled out plans to invest about $34 billion in projects in Canada, Iraq, Kazakhstan, Russia and the U.S.
It is also looking to move its exploration and production into more unconventional countries including Argentina, Germany and Poland.
Exxon plans to increase production between 3% and 4% this year.
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