The obvious conclusion is that we are massively dependent on a resource that has steady ramping global demand and very concentrated supply, with a significant risk of a disruption of this supply.
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In many ways, a disruption of Saudi oil supply would be the ultimate Black Swan.
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That should also address some of the concerns that we've seen about the disruption of the fuel supply chain.
Several companies have blamed the 15 March earthquake in Japan for disruption of their their supply chains, as many have been unable to get hold of key components.
"We may experience a significant disruption in the supply of fabrics or raw materials from current sources or, in the event of a disruption, we may be unable to locate alternative materials suppliers of comparable quality at an acceptable price, or at all, " the company said in the filing.
As a result, the practice of safety stock and holding inventory against commodity price fluctuation and supply chain disruption will provide relief from the fragility of the supply chain.
Another area for which small businesses have not prepared as well as larger companies is in the preparation of alternatives for the supply chain and disruption of goods.
The SPRO exists to deal with a literal disruption in the supply of oil.
Disruption in the supply of critical products, such as rare earth elements, could also affect the availability of information technology equipment.
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The election last week of a hardline anti-capitalist as Iran's new president has added to fears of a disruption in supply.
Lynch thinks that it won't take long for savvy oil traders to notice the gradual building of the capacity cushion and to decide that there is no real threat of supply disruption.
That executives identified such a broad range of risks told us that global supply disruption is indeed a top-of-mind issue for managers of global corporations.
Because of this continuing concentration of supply, the risk of a disruption to oil flows will continue to be a threat, and may even rise.
While Bernanke was accurate to say inflation and the effects of supply chain disruption in Japan would prove to be transitory, he still holds on to his prediction that economic activity will pick up in coming quarters.
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We have the capacity to act in the event of a major supply disruption.
On Monday, we explored a worst-case hypothetical: oil prices spiking in the event of a Saudi supply disruption.
But we have the capacity to act in case of a major supply disruption, and we are talking with international institutions and other -- and oil-producing nations to -- as we examine the developments in the markets.
Clearly the market has reassured itself that this is just a one-off event rather than the beginning of an era of further oil and gas supply disruption in north Africa.
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Toyota had a difficult couple of years given the disruption in its global supply chain caused by the earthquake-cum-tsunami that battered Japan in 2011, causing a partial meltdown at the Fukushima Daiichi nuclear power plant.
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Only a major disruption in supply or worldwide GDP momentum powering north of 4.5 percent changes this bearish construct.
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Carly Fiorina, HP's chief executive, blamed the unit's poor performance on the absence of a traditional uplift at the end of the quarter and disruption caused by a new supply chain system.
One thing is for certain: the disruption provides more than enough evidence of the need to revisit supply chain strategies with a focus on resiliency and flexibility.
The market's already in what one analyst calls a very high anxiety mode, and he says that any real disruption can affect prices, even if there's no threat of a supply shortage.
Accordingly, opponents of an SPR release argue that the reserve should be shut-in until a true supply disruption hits the market.
The aftermath of the devastating earthquake and tsunami that plagued Japan in March hindered output as supply chains faced severe disruption.
Middle East and Russia -- Will remain the predominant sources of global energy supply, with all the political clout that gives them, and the attendant risk of political disruption.
We believe that we are in a situation where supply is not meeting demand, and there are a variety of reasons for that, including disruption caused by the situation in Libya, which has removed 1.5 million barrels a day from the market.
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