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Introduction
Crude oil prices hit multiyear lows recently. Unlike previous dips, the impact of this market shock is expected to persist through 2015 and perhaps beyond.
GEP's commodity experts expect no significant change in supply-demand factors for 2015 and forecast prices in a range of $55/bbl to $65/bbl for the upcoming year. No doubt, such a fundamental shift in the crude oil sector will have a major impact on other commodities and supply chains overall.
This paper explores the key drivers behind the recent decline in crude prices and assesses the impact on other major commodities. The paper also describes four key strategies that would help enterprise sourcing and procurement teams capitalize on this global phenomenon.