The revelation that the US is in a recession wiped almost five per cent off the price of a barrel of oil yesterday (December 2nd).
The drop means that the total value of oil has fallen by more than $100 since July 11th, when the price broke all previous price records.
Registering at just $46.96 per barrel yesterday, the oil price will no doubt receive a luke-warm welcome from supply chain managers.
Although the current price of oil is worth celebrating, many supply chain managers will be concerned more about the fact that there is little to stabilise prices, which means businesses are left exposed to fluctuating costs.
Kyle Cooper, analyst at IAF Advisors in Houston told Bloomberg: "It's all about demand, demand, demand."
"Until we see signs of better economic times, the market is going to move lower."
Supply chain management companies can offer businesses experience and specialist knowledge in the organisation of a supply chain, and can help businesses reduce exposure to such negative forces.
Transport:
Have you got decisions about your transport to make? Start here – now!
