High and rising oil prices are the number one challenge for the global convenience industry, according to a new report from Insight. High petrol prices are changing consumer buying patterns more than any other factor, the organization says, and this is especially true at the pump.
At the same time, high diesel prices and environmental concerns are placing enormous pressure on convenience store supply chains.
Insight’s report, The Future of Oil: Implications for the Global Convenience Store, investigates the reasons for the price increases, predicts future price trends and explores their impact on the global convenience retailing industry.
The price of oil has risen by more than 200 percent since January 2004 and now stands at $127 per barrel, which has an immediate effect on prices at the pump, reports Insight.
The report examines whether the current price is a temporary blip and whether it points to progressively declining supplies of oil with correspondingly higher prices in the future. Alternatively, the researchers consider if the market is moving toward a high point in a longer-term oil price cycle and, if so, can it expect to see more supply and lower prices.
The report predicts what will happen to the oil price in the future and explains how this could affect the convenience retailing industry.
As well as looking at current price hikes, the report analyses the factors that influence oil price to make it easier for forecasters and decision-makers to suggest a likely pattern of supply, demand and price over the next five to 10 years.
The study is based on a detailed investigation into worldwide oil industry trends and recent history. It explores the factors that currently restrict oil production in the OPEC countries and the oil opportunities in markets such as Alaska, Russia, Canada and Venezuela. And it examines if there is scope for a similar reduction in oil consumption that followed the oil price crisis of 1973-1985.
NACS’ retailer and supplier members can purchase this report at a reduced price of £95/euro120/$195.
If you are not already a NACS member you can join for as little as £375 per annum. Contact Neerja Kathuria at nkathuria@nacsonline.com or call (703) 518-4216 for more information on international membership.