Expect oil prices to remain low and "choppy" this year, Chevron CEO John Watson said Friday.
"I believe prices will respond to physical things that are happening in the marketplace and political events all around the world," he said in an interview with "Closing Bell."
"Over time, I think market forces are going to determine where prices are going to go. Right now, we've got surplus oil. I expect this to be a choppy year, around the range that we're in today."
"To see a 50 percent drop in prices, that, I think, surprised a lot of us," Watson said.
He expects that over the next couple of years, oil prices will be lower than what they have been for the last few years. That doesn't mean he's ruling out $100 per barrel oil, but he said it will "take some time" to get back to those levels.
Meanwhile, Chevron is well equipped to handle the recent price environment because it remained flexible.
"We've kept a very strong balance sheet so that we can continue to invest through the business cycle in some of our key developments," he said.