The price of oil has taken a dramatic drop to below $39, it has been reported, following the publication of a range of economic data reinforcing a negative outlook for the year ahead.
Supply chain managers will be pleased to know that oil prices dropped 2.3 per cent on Tuesday (December 23rd), bringing the price of a barrel of US crude to just $38.98, while London Brent dropped to just $40.36 per barrel.
Such news will no doubt please supply chain managers which have had to deal with record oil prices in the previous six months, although the volatility of the price of oil is nevertheless a problem for those trying to manage a supply chain.
What's more, it is unlikely that the price of oil will stabilise soon.
Opec president Chakib Khelil told Reuters on Tuesday that the five per cent cuts made to oil production may have to be reassessed if the prices continue to fall.
"We will review the market again and make a proper decision if we see that prices still continue sliding despite the compliance," Khelil said.
Businesses hoping to reduce their exposure to fluctuating oil prices in 2009 could contact a supply chain management company, which can help a business cut costs through localising a supply chain or simply reassessing the make up of a chain.
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