The price of oil has rebounded back to the $40 level this week following fears of short supplies during the ongoing violence in the Middle East.
Rising six per cent, or $2.31, on Monday (December 29th) to $40.02, the price of crude oil also created buoyancy among the share prices of some of the world's largest oil companies and commodities markets.
The small rise in oil prices comes after months of severe falls in the value of a barrel of oil, and will do little to please businesses or oil importers, including supply chain managers.
Supply chain managers will have no doubt enjoyed the latest falls in the price of oil but stability is often more attractive to businesses than low prices.
The cartel of oil producing nations Opec recently met to discuss how it can ensure oil prices return to a higher level closer to $100 per barrel, but a cut of 2.2 million barrels per day only led to further decreases in the price of oil.
To reduce the exposure a company has to the price of oil a supply chain management company can be contracted to look at ways of altering a supply chain.
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