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November Breakthrough Advisor Preview | A Changing Regulatory Landscape

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Headlines focused on supply-demand uncertainties and export complexities have been abundant in the months leading up to the implementation of Iranian oil sanctions, revealing station-level price volatility that magnifies the value of transparency into transportation fuel spend. A similar story emerged throughout October, as compliance with the upcoming November sanctions impacted Iranian export volumes, particularly to nations throughout Asia, creating speculative supply-driven price pressure in the global marketplace. This corresponding tension caused the Organization of Petroleum Exporting Countries (OPEC) to reconsider production volumes, as international leaders weighed-in on the mounting uncertainty in an evolving global marketplace. Additionally, the regulatory environment will likely foster relevant changes to the energy market in the coming months, as mid-term elections in the United States and decisions concerning carbon pricing mechanisms throughout Canada will create an interesting dynamic for energy prices going forward.

In this month’s edition of the Breakthrough Advisor, the Applied Knowledge team analyzes how compliance with the Iranian sanctions, OPEC’s crude oil production outlook, and economic indicators will influence global energy markets. In addition, they discuss how the regulatory environment and political outcomes could drive upstream and downstream costs of the fuel used to move your goods to market.

Price Impacts of Inventories, OPEC Supply, and Iranian Compliance

In recent months, OPEC leader Saudi Arabia held a firm position on production quantities and their satisfaction with rising oil prices. Despite persistent pushback from some of the world’s most powerful economies, the cartel remained satisfied with the state of the oil market, prices, and the notion that buyers of crude oil were adequately supplied. However, as compliance with the November sanctions on Iran continued to build, reduced Iranian export volumes quickly followed, creating added risk of crude oil supply pressure on an international scale. Additional uncertainty also arises from refinery maintenance, as inventory levels play a more magnified role on crude oil and refined product prices and intricacies of global supply and demand.

What were the market impacts of compliance with Iranian sanctions and OPEC’s strategic shift in production tendencies? In this month’s edition of the Breakthrough Advisor, find out how these events and additional geopolitical, economic, and market fundamentals influenced costs that fuel your global transportation supply chain.

Regulations and Politics: Market Impacts from Governing Bodies

The role of legislation, politics, and overall government decisions often gets lost in the grand scheme of an everchanging energy market. The importance of understanding the variables that impact upstream and downstream components of fuel prices is crucial in creating a competitive advantage in your supply chain, as visibility into the legal side of energy markets is advantageous in preparing for noteworthy developments. Upcoming mid-term elections create the possibility for change, particularly on a regional stage, as California and Colorado are examples of two states under the regulatory spotlight in the weeks to come. Additionally, government stances on carbon pricing mechanisms in Canada will prove noteworthy, as Prime Minister Justin Trudeau prepares to drastically change the carbon costs of transportation fuels in multiple provinces.

What are the details of the coming regulatory changes, and how do geographical differences in policy impact transportation energy costs? Gain the competitive insight as the Applied Knowledge team discusses the untold drivers of market prices that impact your bottom line.

This edition of the advisor publication provides a detailed analysis of the industry’s most recent news and data-driven insights pertaining to your fuel management strategies. If interested, you can gain further insight into fuel market dynamics and trending topics by signing up for the Breakthrough Advisor Brief or contacting the Applied Knowledge team directly.

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