Speaking to the press after Exxon’s (XOM) shareholder meeting, laconic CEO, Rex Tillerson said oil demand hasn’t picked up much this year.
“We have high inventories and high supply overhang, about 4 to 5 million barrels a day of spare capacity,” says Tillerson. However, the weaking dollar and the general investor excitement about the stock market are playing their part in driving the price of oil higher.
Also of note: Gasoline demand peaked last year in Tillerson’s opinion, which means refineries are in big trouble. Plus, cap and trade will hammer refiners as well. Speaking of which, Tillerson took the opportunity to reiterate his support for a carbon tax. He also spit in the wind, shortly thereafter.
As for his business, the decline in oil prices from the absurd heights of 2008 isn’t hurting Exxon, because it doesn’t plan on a world of $100 or $200 oil.
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