Oil Sets Record High After Deadly Attack

[USA320Pilot]

Oil sets record high after deadly attack in Saudi Arabia

Light crude for July delivery settled at $42.33 per barrel, up $2.45, or 6%, on the New York Mercantile Exchange

NEW YORK (Reuters) - U.S. oil prices surged more than $2 a barrel to record highs Tuesday after an attack in Saudi Arabia by Islamic militants killed 22 people, heightening fears about political instability in the world's biggest oil exporter.

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Fuel Costs Force Shakeout

Higher fuel costs may actually end up being beneficial to the low-cost carriers

NEW YORK (The Motely Fool) - As gasoline prices remain high, the pressure on the airline industry continues to mount. Last week, Delta reported to have hired the New York-based law firm Davis Polk & Wardwell for advice on restructuring its business. UAL also noted that fuel prices were the reason for the company's inability to turn an operating profit in April.

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Respectfully,

USA320Pilot

 

[USA320Pilot]

Fuel is the company’s second largest expense following labor.

This year’s budget listed the average price of jet fuel at 86 cents per gallon, but due to skyrocketing energy prices, the new projected figure is $1.06 per gallon. US Airways is hedged at about 35% of its needs and without this effort lead by former chief executive officer Neal Cohen, according to chief executive officer Bruce Lakefield, the company’s average price per gallon would be $1.14 per gallon.

Each 1-cent increase in fuel per gallon costs US Airways about $11 million per year, therefore, the 20-cent increase over budget will cost the company $220 million over budget.

US Airways is not the only airline suffering from the fuel crisis, every airline is. In fact, today the USA Today wrote a column on fuel and its effects on Star Alliance partner United Airlines.

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Respectfully,

USA320pilot

 

[delldude]

just wait until the bad guys sneak another one through the 'NET'.....
YOU AIN'T SEEN NOTHIN' YET..........

 

[ACrazy8]

 

[local 12 proud]

and there are those who said this war is "ALL ABOUT THE OIL"..... then why are we not lining tankers up in the persian gulf and shipping them back across the pond? I SAY THE IRAQI'S OWE US BIG TIME, SO PAY UP WITH THE BLACK GOLD!

 

[mweiss]

Because you can't put it on a boat until you get it out of the ground. In Iraq, the equipment necessary to pull it out of the ground is in horrid condition, and needs substantial time and money put into it. Substantial money is going into it, but there hasn't been enough time yet.

So, in other words, we could line up every tanker in the world at the end of a pipeline connected to Iraq's oil wells, and most of them would have to leave empty.

 

[NWA/AMT]

and there are those who said this war is "ALL ABOUT THE OIL"..... then why are we not lining tankers up in the persian gulf and shipping them back across the pond? I SAY THE IRAQI'S OWE US BIG TIME, SO PAY UP WITH THE BLACK GOLD!

For those who say the war in Iraq WASN'T about the oil...

When we rolled into Bagdad, why was it that the first building we occupied, our highest priority, was the Ministry of Oil? Not the museums, not even the banks, but the Ministry of Oil.

 

[local 12 proud]

so nwa/amt answer the question! WHERES THE OIL? MWEISS your full of CRAP haliburton has/is restored hundred's of oil field pumps and could pump millions of barrels a day easily to the U.S. if so inspired to do so. you have no "CLUE" KNOW IT ALL THAT YOU ARE.

 

[jimntx]

so nwa/amt answer the question! WHERES THE OIL? MWEISS your full of CRAP haliburton has/is restored hundred's of oil field pumps and could pump millions of barrels a day easily to the U.S. if so inspired to do so. you have no "CLUE" KNOW IT ALL THAT YOU ARE.

So far, no oil has been delivered because the Iraqis don't intend to let Halliburton have it. It's not just the well pumps, it's also the pipeline to transport it. The Iraqis keep damaging the pipelines. I'm not totally convinced that I blame them. It's their oil; it does not belong to Cheney and Halliburton.