PanAm747 From United States of America, joined Feb 2004, 4242 posts, RR: 8
Reply 5, posted (11 years 5 months 4 weeks 18 hours ago) and read 2033 times:
I hate to be the Grinch who steals everyone's $99 roundtrip tickets, but...
Oil prices always rise at the drop of a hat, but they NEVER fall rapidly. It will take months for any significant price change at the pump to appear.
Being a Californian, I can tell you from experience - crude oil prices might drop, but the refineries keep their capacity low and prices high. There's always the occasional spike due to "planned maintenance" or "unavoidable shutdown".
Same with jet fuel - the ball is in the refiners' hands, not the producers. I honestly don't think there will be any kind of significant drop in prices at all.
Pan Am:The World's Most Experienced Airline - P(oor) S(ailor's) A(irline): San Diego's Hometown Airline-Catch Our Smile!
Planespotting From United States of America, joined Apr 2004, 3547 posts, RR: 4
Reply 6, posted (11 years 5 months 4 weeks 14 hours ago) and read 1965 times:
well, it has been many months since we have seen a significant price change at the pump. Here in oil country, haha, i paid $1.799 / gallon yesterday to fill up my car. However when i was in San Francisco last week, the cheapest cheap gas i saw was $2.39, and the most expensive of the cheap gas was $2.69. that is f-ing out-rage-ous
TLIMA From Canada, joined Jan 2004, 78 posts, RR: 0
Reply 7, posted (11 years 5 months 4 weeks 11 hours ago) and read 1920 times:
$6.20 and $6.50 a gallon in Europe???? That is really insane!! I thought we had it bad down here in South Texas at $1.79/Gallon...
Hopefully the trend will continue with its downward sprirral.
Is is true that certain airlines (not sure which ones though) can actually "lock" on to their fuel prices for a period of time and not have to worry if the price goes up or down? Or was I just misinformed?
Scotron11 From United Kingdom, joined Feb 2004, 1276 posts, RR: 3
Reply 8, posted (11 years 5 months 4 weeks 11 hours ago) and read 1898 times:
It's called hedging and some carriers do it quite well. Other carriers don't have the capital to tie in to long term contracts so are at the mercy of the market. Im sure if UA or US was able to hedge their losses wouldn't have been as bad. It doesn't mean you are immune from higher oil prices in the long run though!
M404 From United States of America, joined Nov 2003, 2258 posts, RR: 4
Reply 9, posted (11 years 5 months 4 weeks 10 hours ago) and read 1863 times:
Population increase in industrial nations will always feed the price up. Advancing nations will always feed the price up. Product marketing and demand like the US SUV craze will feed it. Fighting between the haves and the have nots in poorer oil source nations will feed it. Filthy political parties in those nations will feed it. The set amount we have of oil sustains it. The rise of "Radical" religious extremists will feed it. Even annual weather changes feed it.
We better get used to it or decide how to get around it.
Less sarcasm and more thought equal better understanding