The current cut to oil production considered by the cartel of oil-producing nations Opec will have little effect on the price of a barrel of oil, a top Deutsche Bank analyst has claimed.
Adam Sieminski, chief energy economist for Deutsche Bank, has argued that the cost of a barrel of oil will shift little even if Opec's current and most severe cut to production goes ahead.
In order to make a difference to the oil prices, "[Opec has] to cut four to five million barrels a day in quotas", Mr Sieminski said.
"They have to get a good portion of that in real, wet barrels off the market. In a sense, Opec is chasing the economy down."
If correct, the comments will mean the cost of operating large supply chains will remain low for some time, but supply chain managers also have to battle the weakening pound, which is reducing the effect of such savings on oil.
A supply chain management company could ensure a business' supply chain is well-prepared to react to a sudden rise in prices, which is perhaps more important than ever at present, given the high exposure to rising prices faced by companies while the pound is so cheap.
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