Chevron Cuts Buybacks as Oil Demand Slows; CEO Mike Wirth Explains

Chevron Corp. will reduce share buybacks this quarter after oil prices tumbled, indicating that President Donald Trump’s trade war is hurting a key US industry he pledged to help.
The Houston-based company said Friday it will repurchase about $2.75 billion of stock in the second quarter, about 30% less than it bought in the first three months of the year. It comes despite Chevron beating earnings estimates on more low-cost production from Kazakhstan and the Permian Basin. 
Chevron Corp. Chief Executive Officer Mike Wirth says he remains confident his company will prevail against in an arbitration case against Exxon Mobil Corp. and close its $53 billion deal to buy Hess Corp.
Big Oil is finding it increasingly difficult to maintain share buybacks as Brent crude slumped 17% this year to about $62 a barrel at the close Thursday. Trump’s tariffs are poised to slow demand growth for crude and increase the cost of steel and other materials needed to produce oil and gas. At the same time, OPEC and its allies surprised markets last month with a plan to increase oil supplies more than expected later this year. 
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