The narrative of lingering uncertainty throughout the global oil market in recent months continued in September. Iran’s position in the international landscape consumed much of the geopolitical spotlight, as anticipation of the November oil sanctions moved the needle in terms of supply and demand complexities, trade barriers, geopolitical tension, and price volatility. Additionally, Hurricane Florence struck the East Coast of the United States, revealing the importance of visibility into supply chain transportation costs as summer months often produce weather events that impact fuel spend and create an element of unpredictability.
In this month’s edition of the Breakthrough Advisor, the Applied Knowledge team discusses how the mounting pressures of Iran, OPEC production quotas, and international banter impact global fuel markets. In addition, they provide insight into how weather events and other unforeseeable circumstances impact the cost of moving your goods to market.
OPEC Production Quotas Amid Iranian Uncertainty
Declining crude oil production, reduced export quantities, and an overarching element of complexity associated with Iran continues to take centerstage in the oil landscape. The loss of Iranian oil to the global market, as a result of sanctions imposed by the United States, leaves OPEC leaders faced with a decision in terms of how to delegate production quotas to satisfy demand and balance global prices. At the cartel’s recent accord in Algiers, output quotas, oil prices, and critics of these two variables emerged as the key topics of discussion. OPEC nations and its production allies came to a consensus regarding what the future of OPEC production holds, with specific considerations for how the US-Iran controversy continues to complicate the global oil market.
What were the details of the meeting and how will OPEC’s decisions and other geopolitical events impact the current and future fuel costs that fuel your global transportation supply chain? Find out in this month’s edition of the Breakthrough Advisor.
The Impact of Weather on Fuel Prices and Infrastructure
Peak hurricane season often threatens the United States from mid-August to late October, with growing frequency of storm damage exceeding $1 billion in recent years. In early September, Hurricane Florence made landfall in the eastern United States, bringing significant damage and extensive flooding to the East Coast that will impact victims of the storms in the coming months. From a downstream energy infrastructure and fuel price standpoint, establishing transparency into fuel costs and pinpointing the source of price volatility when unpredictable events materialize is crucial in understanding actual fuel spend within your supply chain.
What were the resulting side effects of Hurricane Florence, and how do similar events impact energy infrastructure and geographical fuel prices behind the scenes? Experience the expertise firsthand as the Applied Knowledge team takes a deep dive into the energy market and discusses how seasonal events influence supply chain transportation costs.
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 industry topics by signing up for the Breakthrough Advisor Brief or contacting the Applied Knowledge team directly.