He points to low interest rates and, until recently, the relatively poor performance of the stockmarket.Another factor attracting punters and propping up oil prices may be what Eric Bolling, an independent trader on the NYMEX, calls "supply-disruption risk".
Sourcing diversification is the preferred hedge to supply chain disruption risks, but many companies insist on single-sourcing for long-term strategic benefits.
"Between the lost production in Libya, the crude oil dislocation associated with additional Saudi production and the prospect of further turmoil in the region," Mr. Bingaman, Democrat of New Mexico, said in a floor statement late Wednesday, "we are now unquestionably facing a physical oil supply disruption that is at risk of getting worse before it gets better".
Such meetings are called when there is a risk of supply disruption, a European Union statement said.
The strategy identified five rare earth metals (dysprosium, neodymium, terbium, europium, and yttrium) as well as indium as "most critical in the short term," as measured by their importance to clean-energy technologies and the risk of supply disruption.
This technology specific and product design based approach is new, and questions the ability of existing methods to properly address the impact that the risk of supply disruption of a given resource really has on the technological and economic development of a system or technology under study.
Imperfect capital markets, which includes failure to internalize all costs of conventional energy (e.g., effects of air pollution, risk of supply disruption) and failure to internalize all benefits of renewable energy (e.g., cleaner air, energy security).
Many of these materials (including lithium and rare earth metals) are at risk of supply disruption.
These new technologies contain a material mix that is very different to that of the current infrastructure stock, potentially introducing a reliance on "critical" materials at risk of supply disruption (e.g., rare earth elements, cobalt, and lithium).
Results of numerical study and sensitivity analysis provide useful guidelines for managers to select the optimal number of suppliers under the risks of supply disruption.
This can give stewards flexibility and prudent redundancy in funders, suppliers, distributors, procurement arrangements, and even in quality assurance, reducing risks of supply disruption and better serving all customers.
