With the exception of the retail sector, there is a much more modest
level of supply forecast over the next two years.
While it is likely that the reduced build rates will eventually lead to some
level of supply chain destocking, the amount and timing are uncertain until the situation is resolved.
The OPEC Secretariat will hold its 175th ministerial meeting on December sixth to look into the current
level of supply and demand and a possible output change.
"Commentary from the survey points to double-ordering activity, as well as an elevated
level of supply constraints and lead-times," said Morgan Stanley analyst Joseph Moore.
After prices hit $80 a barrel for the first time since 2014 on Friday, the key member of Organization of the Petroleum Exporting Countries (OPEC) said it is consulting other oil producers to ensure an adequate
level of supply to offset any potential shortfalls.
For the third time in four years, consumer and industrial products professionals reported the highest
level of supply chain abuse for the past 12 months (39.1%), a slight decline from 2016 (39.6 %).
Madhavan said he believes the main challenges facing UAE hotel GMs this year include geopolitical issues, an increased
level of supply, and price wars - which is set to be discussed at the conference.
"Years of underbuilding means demand would have to fall very dramatically to meet the low
level of supply increases."
"Years of underbuilding means demand would have to fall dramatically to meet the low
level of supply increases."
This came when the First Vice-President met at the Council of Ministers' General Secretariat , Minister of Oil and Gas, Dr Mohammed Zayed Awad who said in press statement that he briefed the First Vice-President on
level of supply of oil products in the country and consumption of fuel of the agriculture and electricity sectors in this season.
By increasing visibility it can also double the
level of supply chain intelligence.