scotron11
Posts: 1245
Joined: Tue Feb 10, 2004 4:54 pm

Oil Down: Too Early To Cheer!

Thu Dec 02, 2004 6:42 pm

The price of oil fell over $3 yesterday to their lowest in three years. This must be great news for all airlines.

Hopefully the price will fall another $3 today.....early xmas present for all (wishful thinking)

Anyhoo...I hope the trend continues down.....say a respectable $30/BBL....I think everyone can live with that.

By the by, gasoline here in the UK is an average 82p ($1.59) a LITER....approx $6.20 a gallon! Pretty ridiculous, huh?
 
AMS
Posts: 1620
Joined: Thu Aug 14, 2003 7:34 am

RE: Oil Down: Too Early To Cheer!

Thu Dec 02, 2004 6:50 pm

By the by, gasoline here in the UK is an average 82p ($1.59) a LITER....approx $6.20 a gallon! Pretty ridiculous, huh?

Well, still not bad!....Here in the Netherlands you pay EUR1.25 a liter ($1.71)
which is about $6.50 for a Gallon!

Regards,
AMS
 
dakotasport
Posts: 230
Joined: Sat Dec 16, 2000 5:20 am

RE: Oil Down: Too Early To Cheer!

Thu Dec 02, 2004 9:29 pm

Oil's down compared to what?? It's still wayyyy to high for ANY company, not only airlines, to be very profitable!
 
scotron11
Posts: 1245
Joined: Tue Feb 10, 2004 4:54 pm

RE: Oil Down: Too Early To Cheer!

Thu Dec 02, 2004 9:41 pm

Yup...but it's a step in the right direction........down!
 
CanadianNorth
Posts: 3148
Joined: Sat Aug 24, 2002 11:41 am

RE: Oil Down: Too Early To Cheer!

Fri Dec 03, 2004 12:40 am

yaaay I can afford to snowmobile again!!!!!!!

Gas in Whitehorse has been parked at 99.9 forever and a week, and it has finally gone down to 96.9....





CanadiaNorth
HS-748, just like a 747 but better!
 
PanAm747
Posts: 4713
Joined: Mon Mar 01, 2004 4:46 am

RE: Oil Down: Too Early To Cheer!

Fri Dec 03, 2004 1:07 am

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
Posts: 3026
Joined: Sat Apr 17, 2004 4:54 am

RE: Oil Down: Too Early To Cheer!

Fri Dec 03, 2004 5:26 am

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
Do you like movies about gladiators?
 
Tlima
Posts: 76
Joined: Sun Jan 04, 2004 5:31 am

RE: Oil Down: Too Early To Cheer!

Fri Dec 03, 2004 7:59 am

$6.20 and $6.50 a gallon in Europe????  Wow! 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?

Thanx
TLIMA



- Meden Agan -
 
scotron11
Posts: 1245
Joined: Tue Feb 10, 2004 4:54 pm

RE: Oil Down: Too Early To Cheer!

Fri Dec 03, 2004 8:17 am

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
Posts: 1875
Joined: Tue Nov 25, 2003 4:43 pm

RE: Oil Down: Too Early To Cheer!

Fri Dec 03, 2004 9:28 am

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
 
UnitedTristar
Posts: 845
Joined: Fri May 21, 2004 6:45 am

RE: Oil Down: Too Early To Cheer!

Fri Dec 10, 2004 11:27 pm

Interesting new article...made me think of this topic..thought I would share!

http://yahoo.businessweek.com/magazine/content/04_51/b3913051_mz011.htm


-m

 Big thumbs up
 
PHLBOS
Posts: 6510
Joined: Thu Apr 01, 2004 6:38 am

RE: Oil Down: Too Early To Cheer!

Fri Dec 10, 2004 11:33 pm

The below web-article from today's Philadelphia Inquirer is an Associated Press report regarding OPEC cutting production next year.

http://www.philly.com/mld/inquirer/business/10381193.htm
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