Supply Chain Research

OPEC’s decision to restrict oil production until March 2018 disappointed traders who expected even bigger restrictions. As a result the oil price fell 5%. That may not cut shipping companies’ fuel costs. Bunker fuel has risen 93% since April 1 2016 whereas crude oil has risen just 34%. Similarly bunker is 17% higher than at the end of the first quarter, while oil fell 10%. There will be an impact on U.S. imports though. The Saudi Energy Minister Khalid Al-Falih says shipments will be cut “markedly”. That follows Saudi exports to the U.S. in March that increased 91% on a year earlier to t...