Oil Soars to Four-Year High

  • Oil prices rose to a four-year high following OPEC’s meeting this weekend, according to the Wall Street Journal.

  • Transportation costs are rising too – in all modes of transportation – by sea, land, and air.

  • Over past 12 months, WTI crude oil prices rose 37%, from $47 to $65/bbl.

  • This caused diesel fuel prices to rise 29% (from $2.50/gal to $3.22/gal).

  • Thus, overall trucking costs rose by 23% - about 2% every month.

  •  Container shipping costs are being driven up as well, as prices for bunker fuel have surged 270% since 2016.

  • Outlook for 2020 (when IMO pollution standards kick in): EVEN HIGHER!

How will this impact FF&E supply chains?

What can purchasing companies do to mitigate these rising costs?

Download OPEC’s World Oil Outlook 2018: https://woo.opec.org/, or contact Kevin Williams at KevinW@jmcgl.com, or your JMC sales representative to discuss alternatives