Negative crude oil prices: Supply chain disruptions and strategic lessons
1 Independent Researcher, Houston Texas, USA.
2 Independent Researcher, UK.
3 Department of Mechanical Engineering, Redeemer’s University, Ede, Osun-State, Nigeria.
Review
Open Access Research Journal of Multidisciplinary Studies, 2024, 08(01), 085–093.
Article DOI: 10.53022/oarjms.2024.8.1.0050
Publication history:
Received on 07 August 2024; revised on 16 September 2024; accepted on 18 September 2024
Abstract:
The 2020 collapse of crude oil prices into negative territory was unprecedented and exposed critical vulnerabilities in the global oil supply chain. This review examines the factors that contributed to negative pricing, including excess supply, storage limitations, geopolitical instability, and market speculation. It also highlights the oil supply chain's significant disruptions, particularly in transportation, production, and distribution. Strategic lessons from the crisis are explored, emphasizing the importance of risk management, flexible supply chains, and policy adaptations to ensure future resilience. Finally, the review offers recommendations for industry players and policymakers to safeguard against future crises, focusing on diversified energy portfolios, enhanced logistical capabilities, and stronger regulatory frameworks to stabilize the market in the face of volatility.
Keywords:
Negative oil prices; Supply chain disruptions; Risk management; Oil futures market; Geopolitical instability
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0