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Reasons For Fuel Price Rises Over The Past Year?  
User currently offlinemulletman101 From Australia, joined Apr 2010, 8 posts, RR: 0
Posted (4 years 6 months 1 week 2 days 2 hours ago) and read 1948 times:

Hi there guys.
As of one year ago, jet fuel has risen by 41.5%. Does anybody know the reasons for this?

Cheers
MM

8 replies: All unread, jump to last
 
User currently offlinespudsmac From United States of America, joined Feb 2008, 302 posts, RR: 0
Reply 1, posted (4 years 6 months 1 week 2 days 2 hours ago) and read 1942 times:

Supply and demand



.


User currently offlinethegreatRDU From United States of America, joined Mar 2006, 2311 posts, RR: 4
Reply 2, posted (4 years 6 months 1 week 2 days 2 hours ago) and read 1933 times:

I'm not a fan of regulation but Congress needs to take a look at this...


Our Returning Champion
User currently offlineRJ111 From , joined Dec 1969, posts, RR:
Reply 3, posted (4 years 6 months 1 week 2 days 1 hour ago) and read 1904 times:

There are normally several factors. And one of them is the development of India and China - With their huge populations demand for oil has markedly increased and thus, driven up the price.

User currently offlinesunrisevalley From Canada, joined Jul 2004, 5138 posts, RR: 5
Reply 4, posted (4 years 6 months 1 week 2 days 1 hour ago) and read 1897 times:

Quoting thegreatRDU (Reply 2):
I'm not a fan of regulation but Congress needs to take a look at this...

The result of which will be a shortage. They could legislate to divert from the strategic reserve to take the pressure off the spot price, but there are no votes in confining this to Jet A or whatever the airlines buy. I would expect them to take the easy way out and attempt to reduce the price at the pumps. That's where the votes are!


User currently offlinetdscanuck From Canada, joined Jan 2006, 12709 posts, RR: 80
Reply 5, posted (4 years 6 months 1 week 2 days 1 hour ago) and read 1893 times:

Quoting mulletman101 (Thread starter):
Does anybody know the reasons for this?

Two things...rise in crude oil price (driven mostly by rising global demand) and rise in the crack price (the price to covert a barrel of crude to a barrel of jet fuel). Why crack price is rising is kind of complicated, but it relates to refinery capabilities and the demand mix between the various petroleum products.

Quoting thegreatRDU (Reply 2):
I'm not a fan of regulation but Congress needs to take a look at this...

It's way beyond their capability...oil is probably the most global of commodities.

Tom.


User currently offlineAAExecPlat From United States of America, joined Sep 2009, 636 posts, RR: 4
Reply 6, posted (4 years 6 months 1 week 2 days 1 hour ago) and read 1879 times:

It's all speculation these days. Supply and demand have not driven the price of oil for some time. As long as we allow anyone to make bets on the price of oil without owning oil, or having a use for oil, the price will be disconnected from fundamentals.

Do a little reading...Matt Taibi wrote some pretty good articles about Goldman and Sachs and their connection to Oil prices. That'll help you understand.


User currently offlineAirNZ From , joined Dec 1969, posts, RR:
Reply 7, posted (4 years 6 months 1 week 2 days 1 hour ago) and read 1877 times:

Quoting thegreatRDU (Reply 2):
I'm not a fan of regulation but Congress needs to take a look at this...

I would have to disagree there. The US Congress has no control/jurisdiction of what the market price is for any commodity, let alone oil. If you're talking about regulating such only within the US, then that's a different thing entirely, but which would then result in blatant protectionism.


User currently offlinemulletman101 From Australia, joined Apr 2010, 8 posts, RR: 0
Reply 8, posted (4 years 6 months 1 week 1 day 18 hours ago) and read 1789 times:

Ok guys, thanks.
MM


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