Hedge

[crazystnic]

Doug and Scooter say they don't need to hedge.
Oil just broke 90 a barrell.

Most other airlines are at least partially Hedged.
the last time when Oil was at 140 a barrell and they were hedging... seemed like they were on the back side of the power curve on that one.
Now Doug like's to say we have a natural hedge built in... ..cough cough..

Me thinks they should of used some of that 250 M to hedge.

instread will probablly throw it on the backs of the employees.

what say you?

 

[autofixer]

They would rather have fuel prices as an issue in labor negotiations. :angry:

 

[crazystnic]

CNBC interview on fuel.

http://www.cnbc.com/id/15840232?video=1707745980&play=1

 

[MUTATIS MUTANDIS]

CNBC interview on fuel.

http://www.cnbc.com/id/15840232?video=1707745980&play=1

CZ, when I bring it up it is blown off as JIBBERISH as on well guess who?, with PHX as a 3 to 4% yield market, (SWA competition to boot) and increasing pressure in the coming year, it will be a matter of time. DP and scooter will need to make some hard decisions, and guess why he wants seperate contracts, just like pro players, their contracts can be transfered to a different team, that risk thing we all know! OIL will get to triple digits in less than 6 months, the rest will turn jibberish into reality! HAPPY HOLIDAY'S MM!

 

[cynic]

CZ, when I bring it up it is blown off as JIBBERISH as on well guess who?, with PHX as a 3 to 4% yield market, (SWA competition to boot) and increasing pressure in the coming year, it will be a matter of time. DP and scooter will need to make some hard decisions, and guess why he wants seperate contracts, just like pro players, their contracts can be transfered to a different team, that risk thing we all know! OIL will get to triple digits in less than 6 months, the rest will turn jibberish into reality! HAPPY HOLIDAY'S MM!

Put down the crack pipe. It's for your own good.

 

[MUTATIS MUTANDIS]

Put down the crack pipe. It's for your own good.

Page added on December 24, 2010


Brent oil price nears $95, crude market looks bullish
Brent oil prices remain firm over the $94 mark in light trading today as investors and analysts predict that the crude oil market looks bullish and prices may soon trade through $100 a barrel.

Latest Brent Oil Price

 

[mikey60]

Doug and Scooter say they don't need to hedge.
Oil just broke 90 a barrell.

Most other airlines are at least partially Hedged.
the last time when Oil was at 140 a barrell and they were hedging... seemed like they were on the back side of the power curve on that one.
Now Doug like's to say we have a natural hedge built in... ..cough cough..

Me thinks they should of used some of that 250 M to hedge.

instread will probablly throw it on the backs of the employees.

what say you?

THE ceo of Gulf was on CNBC the other morning and said oil will go above 100 a barrel by may and a 25% chance of it going above 140 by summer....why would the brain trust in phx do something smart.

 

[autofixer]

http://www.bloomberg.com/news/2010-12-24/oil-consumers-wary-as-some-opec-members-target-100-before-cairo-meeting.html

http://personalmoneystore.com/moneyblog/2010/12/07/oil-prices/


Balance thiese articles with what our politicians and the Fed is saying. I was especially estatic about the $4 per gallon comment (not).

 

[SpinDoc]

http://www.bloomberg.com/news/2010-12-24/oil-consumers-wary-as-some-opec-members-target-100-before-cairo-meeting.html

http://personalmoneystore.com/moneyblog/2010/12/07/oil-prices/


Balance thiese articles with what our politicians and the Fed is saying. I was especially estatic about the $4 per gallon comment (not).

Sounds like it's time to get another campaign going to derail the speculators. We as consumers are being had by the big banks and hedge funds that are investing in oil futures contracts to try and gain back some of their losses in other parts of the Wall Street casino. Don't worry, they are creating another bubble like in 2007 that will eventually cause prices to drop back into rational ranges of $50 - $60/bbl. It's a little late for US to jump on the hedging bandwagon, because if they bought now at $91, their market timing would cause massive losses when the bubble crashes.

 

[cynic]

Not to mention the fact that we wouldn't be getting it for $91 as well. We would have to pay a premium over the current rate if there is an assumption that the price will continue to go up, plus the fees associated with the transaction too. As long as it goes up very slowly, the company may well be better off without the hedges.

 

[BoeingBoy]

Sounds like it's time to get another campaign going to derail the speculators.

Speculation is what the airlines so - bet on the future movement in the price hoping for profits to offset some/all/more than all af the added cost of fuel. Especially the way US did hedged before stopping - use short term futures which resulted in the optioned price not being much different than the price when the option expires unless you get something like 2008 where oil prices spiked up then fell rapidly - US had options at $140/bbl that expired at $40/bbl and lost a lot of money hedging.

Anyway, the airlines want limits on hedging except when they do it.

Jim

 

[autofixer]

Speculators are not all US. If the government here does some law, attempting to limit speculation, they will just move their operations and tax base overseas. Remember that US oil companaies only control 4% of the World's oil reserves.

Here is an article from the last round of fear mongering:

http://money.usnews.com/money/blogs/flowchart/2008/6/27/6-myths-about-oil-speculators

And some recent oil news:

http://www.vanguardngr.com/2010/12/chevron-shuts-in-nigerian-oil-production/

http://www.reuters.com/article/idUSTRE6810XU20100930

http://www.ft.com/cms/s/0/5f521520-dae4-11df-a5bb-00144feabdc0.html#axzz19BZFZow3

You will notice these articles have nothing to do with the USA. We are at the mercy of the World.

 

[Dont call me Shirley]

Sounds like it's time to get another campaign going to derail the speculators.

Nothing was done in the old Congress about this, even less likely now.

 

[john john]

Especially the way US did hedged before stopping - and lost a lot of money hedging.



Jim

Cracker Jack management team
FEES FEES FEES FEES FEES

 

[MUTATIS MUTANDIS]

Speculators are not all US. If the government here does some law, attempting to limit speculation, they will just move their operations and tax base overseas. Remember that US oil companaies only control 4% of the World's oil reserves.

Here is an article from the last round of fear mongering

You will notice these articles have nothing to do with the USA. We are at the mercy of the World.

A little perplexed at your statement of "fear mongering", more appropriate would be "global rationalization" one has to only look around to the emerging nations in this world and relize, we aint one of them! OIL a finite resource, will go to the highest bidder and those with the ABILITY to pay! INDIA, CHINA, etc etc, those with the resource produciing it using it will flourish, those importing it are subject to the whim of the seller and all the economic fallout, ie the US and especially the US airlines! MM! Thanx for posting those articles!