OPEC production cuts greatly overrated

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One of the big risks commonly identified in recent months as a major threat both to global supply chains and the companies that operate them is the expected increase in oil prices. Rising bunker prices could scupper the nascent recovery in container shipping by negating rising freight rates and keeping shipping firms in loss-making territory; equally they could further squeeze margins on already hard-pressed hauliers and forwarders. Much has centred on recent agreed cuts in production agreed by OPEC nations. However, this analysis from Logistics Management argues that the price of oil per barrel will remain in the $50-$60 range.