Supply Chain Research

Crude oil is trading at its lowest since November after a 15% drop in the past month. That was the result of concerns about oversupply after U.S. production soared and OPEC’s response remained uncertain. A 6% fall in bunker fuel costs is good news for container-lines. However, a resulting 5% drop in tanker rates from recent peaks bodes ill for the tanker operators after a 23% drop in March. Furthermore Canada and Mexico will suffer at the macroeconomic level. Gains in oil prices accounted for 89% of the increase in Canada’s exports in March and 10% of Mexico’s.