SUPPLY CHAIN MANAGEMENT
“ Lufthansa for example , announced last month that it expected its fuel bill for this year to be 13 percent lower than previously forecast , as a result of the low oil price ” its fuel bill for this year to be 13 percent lower than previously forecast , as a result of the low oil price .
The two main reasons for this change are a weak demand in many countries due to flat economic growth , coupled with surging production from North American shale companies via methods such as fracking .
This is then compounded by a rising dollar compared to a range of other currencies , and the fact the Organisation of the Petroleum Exporting Countries ( OPEC ) is refusing to cut production as a way of re-establishing the supply and demand equilibrium . The main oil producing country , Saudi Arabia has supported OPEC ’ s stance too .
The conglomerate AP Moller- Maersk is performing well overall despite the oil price drop which would seemingly adversely affect its Maersk Oil division . Its shares are up 14 percent since December 2014 .
Looking at the biggest losers coming out of the price plunge , it is clear to see this is spelling very bad news for Venezuela and Russia in particular . The well documented rouble collapse which came to a head before Christmas , is a problem which
12 February 2015