EK156
Topic Author
Posts: 646
Joined: Mon May 09, 2005 8:01 pm

Hype Of Oil Prices Has Calmed Down!

Sat Oct 08, 2005 7:15 am

It seems that the hype of the Oil Prices has calmed down and the price has been more or less stable for sometime.

Today it recorded US$ 62. It might even go down more... who knows!!!

Do you think this is a good time for airlines to stock up on fuel to avoid any future increase in the price or should they wait for it to go down even more??

What about those fuel surcharges, will they be cancelled eventually? Or atleast lowered??
 
Web
Posts: 318
Joined: Thu Jun 23, 2005 6:56 am

RE: Hype Of Oil Prices Has Calmed Down!

Sat Oct 08, 2005 10:11 am

Quoting EK156 (Thread starter):
Do you think this is a good time for airlines to stock up on fuel to avoid any future increase in the price

Do you mean hedge fuel for later? Because I don't know where airlines would store the vast quantities of fuel they would need to operate for an extended period of high-priced-fuel time. And even hedging might not be too smart right now, as the US petroleum industry is recovering from two hurricanes that struck a vital part of their operation, and prices are bound to go down as refineries and rigs are restored and production levels increase back to normal again.
 
PyroGX41487
Posts: 246
Joined: Sun Oct 31, 2004 3:06 am

RE: Hype Of Oil Prices Has Calmed Down!

Sat Oct 08, 2005 10:17 am

Hang on, its down to $62 a barrel? What do you mean by US $62?
 
COFreqFlyer
Posts: 358
Joined: Thu Sep 02, 2004 11:44 am

RE: Hype Of Oil Prices Has Calmed Down!

Sat Oct 08, 2005 1:34 pm

Yeah sure. Just found out that the price of AvGas is going up $0.85/gallon next week, the refinery called and asked if our local FBO wanted a load before it jumps. Nothing like $5.50/gallon. Woo.
The Proud Bird with the Golden Tail
 
B744F
Posts: 2927
Joined: Sat Jan 21, 2006 4:52 pm

RE: Hype Of Oil Prices Has Calmed Down!

Sat Oct 08, 2005 1:36 pm

only temporary

the big holders are selling off their shares to make a killing
 
Slarty
Posts: 302
Joined: Fri Sep 16, 2005 5:23 am

RE: Hype Of Oil Prices Has Calmed Down!

Sat Oct 08, 2005 2:02 pm

Quoting EK156 (Thread starter):
It seems that the hype of the Oil Prices has calmed down and the price has been more or less stable for sometime.

What? I day-trade oil/gas as a retail investor. Other than today, Friday Oct. 7 (not sure what time zone you are in), where there was a relief rally, we had 6 continuous biz days of energy downturns ... that was a 10-15% drop, primarily based on a anticipated 3% downturn in US gasoline demand. Guess what? the rest of the world (other than Europe) is generally growing their oil consumption faster now than the USA.

Distillates, like gasoline, aviation fuel, heating oil, etc. have been even more crazy. Alternatives like natural gas have actually risen more than oil/gas.

IMHO, unlike the '71 oil crisis, we have reached the first inflection point of a longer-term bull trend, whereby this time, demand is approaching the supply. Major worldwide resources (capital, research/development, re-development, etc.) are being deployed to increase supply (lots of resources will be available in coming yars), but it is going to take a few years.

I recommend you check out the futures at http://www.nymex.com for freebie info. Look at the Jan./Feb. options contracts in particular ...
 
Alessandro
Posts: 4962
Joined: Wed Sep 12, 2001 3:13 am

RE: Hype Of Oil Prices Has Calmed Down!

Sat Oct 08, 2005 8:01 pm

Still hot in the Northern hemisphere, +17C outside my window in the shade.
Wait until there´s a real cold spell, then the oil price is up again...
From New Yorqatar to Califarbia...