Part 5/7:
Amidst Chevron's tumultuous changes, the broader oil market is facing pressures from oversupply and muted demand, driving concerns about future profitability. Predictions of rising oil prices associated with heightened demand have not materialized, as evident in commodity trading trends. Reports of a nearing contango market—the condition in which futures prices are lower than spot prices—underscore that the oil market may not rebound quickly.
This environment feeds into the economic narrative that we have "forgotten how to grow." Expectations of robust economic growth are being systematically dashed as companies, including Chevron, reconfigure their expectations and operations to align with a perceived stagnation.