Oil Prices Hit New High On Supply Fears
- Thread starter usair_begins_with_u
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Airlines raise fares to try to offset record fuel costs
United Airlines (UA) and Delta Air Lines (DL) raised fares late Wednesday to mitigate skyrocketing jet fuel prices. UA raised fares up to $5 for each one-way leg of a trip, and DL raised fares $10 one-way, except in markets where it faces low-cost competition. CO matched DL's fares.
Fuel shortages may affect domestic airlines
An Associated Press story reported Wednesday that airports in Arizona, California, Florida and Nevada "came within days - and at times within hours - of running out of jet fuel." The article said that airline traffic is growing faster than the country's fuel refining and transportation infrastructure.
"Part of the problem is that refining and pipeline capacity in some regions of the U.S. have grown slower than demand, meaning companies must run their equipment harder to satisfy growing fuel needs," the story said. "This raises the chances of operational snags and leaves less of a cushion when something goes wrong."
United Airlines (UA) and Delta Air Lines (DL) raised fares late Wednesday to mitigate skyrocketing jet fuel prices. UA raised fares up to $5 for each one-way leg of a trip, and DL raised fares $10 one-way, except in markets where it faces low-cost competition. CO matched DL's fares.
Fuel shortages may affect domestic airlines
An Associated Press story reported Wednesday that airports in Arizona, California, Florida and Nevada "came within days - and at times within hours - of running out of jet fuel." The article said that airline traffic is growing faster than the country's fuel refining and transportation infrastructure.
"Part of the problem is that refining and pipeline capacity in some regions of the U.S. have grown slower than demand, meaning companies must run their equipment harder to satisfy growing fuel needs," the story said. "This raises the chances of operational snags and leaves less of a cushion when something goes wrong."
usair_begins_with_u
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Sorry pal... you're the one listening to hype.. about bubbles... Everything is called a bubble now notice that? housing, oil, etc.. everything a bubble. bubble bubble bubble.. all the talking heads love talk about bubbles... Where the hell is lawrence welk???
The fact of the matter is, oil is NOT a re-newable source of energy, there is a limited supply of it, and there is maximum rate at which it can be pumped out of the ground and processed. For you to completely ignore these undistputed facts even in the face of history (see 1970's oil shocks) when supply was only cut by 5% yet inflation adjusted prices hit $80 a bbl in 2005 dollars, shows me that you dont even want to be taken seriously, or that you are merely talking out your arse.
There is a massive industrialization of the world going on right now, the likes not seen since our own industrial revolution. And as we've seen in the past (1970's you just read that) it only takes a small percentage change in the supply demand equation to drastically change the price of oil. This is percisely because the DEMAND FOR OIL IS PERFECTLY INELASTIC (at least in the short run). Do you know what that means nostradumbass? It means if gas cost $10 a gallon, you'd still fill up your tank so you could drive to work. Oil prices will decline only when the supply is increased, which I might add is not an overnight solution. Some very reputable geologists have already hypothosized that the world has reached its peak oil production capacity.
Now, lets take a step back. Do you understand the basis for trade in comodity markets? Could you explain to me how in effect some one could bid up prices on the global supply of multi billion dollar a day comodity with out being undercut assuming it was only bid up purely on speculation?? Do you realize that trying to corner a market is a zero sum game?? No one would finance such hair brained scheme. Two brothers tried to do that with silver (a much,much smaller comodity in terms of global trade) and actually managed to control 40% of the world supply through buying and leveraging fortunes equal to the total GDP of small country!! they wound up broke. You see, there are simply not enough extreme risk takers, and not enough capital, to sustain the growth in prices we've seen with out more fundemental problems in the demand/supply equasion.
usair_begins_with_u
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Just is case you learn by visual stimulation....
Maybe Spin can understand the following that is occuring:
Airline Fuel Rationing Could Be First Sign of an 'Energy Crisis,' Expert Warns
Friday August 12, 4:03 pm ET
BALTIMORE, Aug. 12 /PRNewswire/ -- With airports around the country coming within days, sometimes hours, of running out of jet fuel, one expert says this could be the first sign of much worse to come.
The Associated Press reports that airports in Arizona, California, Florida and Nevada recently faced fuel shortages. It puts the blame on the growing strain on refineries and pipelines.
Yahoo Aviation News
Airline Fuel Rationing Could Be First Sign of an 'Energy Crisis,' Expert Warns
Friday August 12, 4:03 pm ET
BALTIMORE, Aug. 12 /PRNewswire/ -- With airports around the country coming within days, sometimes hours, of running out of jet fuel, one expert says this could be the first sign of much worse to come.
The Associated Press reports that airports in Arizona, California, Florida and Nevada recently faced fuel shortages. It puts the blame on the growing strain on refineries and pipelines.
Yahoo Aviation News
Dog Wonder
Veteran
The good doctor is too worried about covering W's backside to make an objective post.
Dog Wonder said:
Excuse me. I have no intention of trying to
"cover" George Bush's back. He has friends
in the oil industry who are making money
hand over fist at the expense of the American
transportation system, and I disagree with
his failure to get involved.
If we really wanted to, we could depress
oil prices in the U.S. fairly easily by releasing
oil from the Strategic Reserve. I am at a loss
to understand why this hasn't been done yet.
W.J. Clinton did this in 1996, and we had
$.79 per gallon gasoline for several months
and sub-$20/bbl oil.
Oil companies are sitting by watching the
profits roll in without reinvesting to find
ways to keep the cost of exploration and
production low. Speculators in the futures
market are profiting from it as well. It's time
to turn the tables on these bastards, but
enough Americans need to complain to
the White House to make any real action
come about.
Say what you want about me, but you
know I'm right and we could so something
about the current situation if our Govt.
would get off their arse.
Maybe I am lost, but BP posting $6 BILLION, yes BILLION, dollars profit and Exxon Mobil $8 BILLION how is it possible that oil is so high?
If you made $8 BILLION dollars what is the oil companies excuse for prices being so high?
BILLION! BILLION! that's with a "B" what a rip off!
If you made $8 BILLION dollars what is the oil companies excuse for prices being so high?
BILLION! BILLION! that's with a "B" what a rip off!
Dog Wonder
Veteran
"Say what you want about me, but you
know I'm right and we could so something
about the current situation if our Govt.
would get off their arse."
What could 'we' do?
know I'm right and we could so something
about the current situation if our Govt.
would get off their arse."
What could 'we' do?
Flufdriver
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No wonder "W" always has a stupid gin on his face.....him a "DicK are doing themselves good...real good!
BoeingBoy
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Since my weekly petroleum reports are late this month due to my work schedule, I'll just tack this week's on here......
Spot prices for jet fuel........8/05.......7/29.......7/22.......7/15.......7/08.......7/01
New York Harbor............$1.7430 $1.6750 $1.6115 $1.6713 $1.7230 $1.7323
Gulf Coast......................$1.7230 $1.6645 $1.6350 $1.6450 $1.7005 $1.7060
Los Angeles...................$2.0050 $1.8250 $1.7000 $1.7100 $1.7700 $1.7900
Spot prices for crude.........8/05.....7/29.....7/22.....7/15.....7/08.....7/01
WTI Cushing..................$62.44 $60.71 $57.75 $58.36 $59.71 $59.11
Brent.............................$60.73 $59.77 $56.98 $56.98 $59.00 $56.41
Current crude prices - NYMEX contracts set both an intraday and closing all-time high this week:
WTI Cushing...$66.86 (close on 8/12/05)
Dated Brent....$66.36 (close on 8/12/05)
NYMEX............$66.86 (close on 8/12/05)
Finally, average spot prices of jet fuel by month (by quarter once the quarter is over):
Delivery point....1Q05......2Q05......Jul05.....Aug05*
NY Harbor...... $1.4861 $1.5833 $1.6859 $1.7420
Gulf Coast..... $1.4400 $1.5649 $1.6647 $1.7233
Los Angeles.. $1.5228 $1.7008 $1.7525 $1.9646
* thru Aug 09
Jim
Spot prices for jet fuel........8/05.......7/29.......7/22.......7/15.......7/08.......7/01
New York Harbor............$1.7430 $1.6750 $1.6115 $1.6713 $1.7230 $1.7323
Gulf Coast......................$1.7230 $1.6645 $1.6350 $1.6450 $1.7005 $1.7060
Los Angeles...................$2.0050 $1.8250 $1.7000 $1.7100 $1.7700 $1.7900
Spot prices for crude.........8/05.....7/29.....7/22.....7/15.....7/08.....7/01
WTI Cushing..................$62.44 $60.71 $57.75 $58.36 $59.71 $59.11
Brent.............................$60.73 $59.77 $56.98 $56.98 $59.00 $56.41
Current crude prices - NYMEX contracts set both an intraday and closing all-time high this week:
WTI Cushing...$66.86 (close on 8/12/05)
Dated Brent....$66.36 (close on 8/12/05)
NYMEX............$66.86 (close on 8/12/05)
Finally, average spot prices of jet fuel by month (by quarter once the quarter is over):
Delivery point....1Q05......2Q05......Jul05.....Aug05*
NY Harbor...... $1.4861 $1.5833 $1.6859 $1.7420
Gulf Coast..... $1.4400 $1.5649 $1.6647 $1.7233
Los Angeles.. $1.5228 $1.7008 $1.7525 $1.9646
* thru Aug 09
Jim
BoeingBoy
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Bear,
Obviously, the info is "bad" - in the sense that it's bad news......
Seems ironic, doesn't it? When the "Transformation Plan" was based on mid-$40's oil, the price went to the mid-$50's. When the "TP" was based on $50 oil, the price went to $60. Not that the plan is based on $57 oil, what does the price do - go to $67 (and T. Boone Pickins is forecasting $75/bbl within 12 months).
Looks like that old saying about "A day late and a dollar short" might have to be changed to "A month late and $10 short". Call it an inflation adjustment.....
Jim
ps - more "good news" per Bloomberg:
"Brent loadings will drop 31 percent next month as repairs disrupt output in the North Sea, according to a loading program obtained by Bloomberg."
Obviously, the info is "bad" - in the sense that it's bad news......
Seems ironic, doesn't it? When the "Transformation Plan" was based on mid-$40's oil, the price went to the mid-$50's. When the "TP" was based on $50 oil, the price went to $60. Not that the plan is based on $57 oil, what does the price do - go to $67 (and T. Boone Pickins is forecasting $75/bbl within 12 months).
Looks like that old saying about "A day late and a dollar short" might have to be changed to "A month late and $10 short". Call it an inflation adjustment.....
Jim
ps - more "good news" per Bloomberg:
"Brent loadings will drop 31 percent next month as repairs disrupt output in the North Sea, according to a loading program obtained by Bloomberg."
