oil tops 75 yesterday
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USCREW
Veteran
I say tents and bicycles...that'll show them! Who needs oil?Yeah...and maybe people should get rid of their unnecessary 3 bedroom homes and live in a studio apartment and heat their home with a sterno can. Boy, I bet those oil prices would really drop.
Why do we have the mail delivered every day - how about Tues and Thur?
Why do I have 4 (four) different trash haulers winding around my streets every Friday morning?
We can do better.
Why do I have 4 (four) different trash haulers winding around my streets every Friday morning?
We can do better.
It's called capitalism. And we live in a free (albeit fairly stupid) society.
And our leadership is more interested in lining their pockets and being re-elected than they are in ending our dependence on foreign oil.
Just my two cents but a country as advanced as ours could easily end foreign oil dependence if the citizens had the will to force them to do so. But the citizens remind me of the GAG'rs. It will all go away and things will be OK if we just give in and allow the leadership (read management and congress) to work things out.
Yeah, that's gonna happen.
pilot
And our leadership is more interested in lining their pockets and being re-elected than they are in ending our dependence on foreign oil.
Just my two cents but a country as advanced as ours could easily end foreign oil dependence if the citizens had the will to force them to do so. But the citizens remind me of the GAG'rs. It will all go away and things will be OK if we just give in and allow the leadership (read management and congress) to work things out.
Yeah, that's gonna happen.
pilot
Seatacus
Veteran
Yeah....why don't we have just one state airline that uses an Airbus 380 and only flies when it has enough people to fill it.
Yeah....why don't we have just one state airline that uses an Airbus 380 and only flies when it has enough people to fill it.
You got my point.
Our 'leadership' is more interested in dividing americans along partisan lines to retain a republican majority, then they're interested in bringing us together to overcome the challenges we face.
Oh and the 'challenges' we face aren't just deficits and bad schools.... it's life and death.... terror and war.... so... that's just a little to evil for me.
I like it when Republicans play hardball to do somethings like tort reform or to kill archaic little spending programs.... but this is SERIOUS people and we have Karl Rove running our country like its a partisan score card.
Oh and the dems are almost as bad. We need to UNITE... and they just fall for every little trick in ROVE's playbook... divide the democrats over unionizing homeland security... divide the democrats and libertarians over wireless wiretapping. and when that works so well, do it again over torture, tribunals, bank records and phone records. Gee instead we could be doing some of these things the EFFECTIVE and RESPONSIBLE way and stop arguing over it!
It's OUTRAGEOUS
Yes. IMAGINE if we had come together as a country to accomplish something after 9/11? Imagine that the WWII generation had already SAVED THE WORLD in the time that's elapsed since 9/11. What have we accomplished... just turn on CNN to find out.
EricLv2Fish
Veteran
- Aug 25, 2005
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BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
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Fresh from 10 days of bumming around Alaska with my two brothers in a Maule
, I'll use this as a way to slide into my very delayed petroleum update.....Spot prices ended the week of 7/7/06 at:
NY Harbor jet - $2.2160
Gulf Coast jet - $2.2339
Los Angeles jet - $2.5168
WTI Cushing crude - $74.65
From Bloomberg, the closing price for WTI Cushing on 7/18/06 was $73.64.
Spot prices from Platt's, also for 7/7/06:
Europe & CIS - $2.2350
North America - $2.2330
Asia & Oceania - $2.1720
Middle East & Africa - $2.1380
Latin & Central America - $2.2560
Someone mentioned our fuel hedging - that was also mentioned in the investor guidance issued on 7/7/06:
"Fuel - US Airways uses costless collars on Heating Oil Futures as a fuel-hedging vehicle. For Q206, the Company has 41% of its fuel hedged, and expects to pay between $2.15 and $2.20 per gallon of jet fuel (including taxes and hedges). The collar range of the hedges in place is between $1.71 and $1.90 per gallon of heating oil, or an equivalent price of $67.37 per barrel of crude oil. Forecasted volume, fuel prices, hedge percentages, and equivalent price per barrel of crude oil are provided in the table below."
For the complete investor guidance (including the "table below" mentioned above), see HERE
Finally, the usual jet fuel vs WTI price chart updated to reflect June's average spot prices:
View attachment 4997
Jim
BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
On 7/11/06, the EIA released their latest 'Short-Term Energy Outlook' which had this to say about the global petroleum market:
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Although higher prices have slowed world petroleum consumption growth, expected growth remains strong at 1.6 million barrels per day (bbl/d) in 2006 and 1.8 million bbl/d in 2007 (Figure 4. World Oil Consumption Growth). Most consumption growth will be met by increases in non-OPEC (Organization of Petroleum Exporting Countries) production. The remainder will be met by increases in OPEC production or drawdown of inventories.
First quarter 2006 production data show slightly higher-than-expected non-OPEC production, but growth for the year will likely remain flat at 0.8 million bbl/d (Figure 5. Growth in World Consumption and Non-OPEC Production). This includes 0.2 million bbl/d of total liquids growth from the United States as producers continue to recover from losses suffered during the 2005 hurricane season. Growth in 2007 non-OPEC production likely will rise to more than 1.4 million barrels per day (Figs. 6a-6f, International Oil Supply Charts).
Relative to 2005, surplus world crude oil production capacity, most of which is located in Saudi Arabia, is expected to rise only slightly in 2006 and 2007 (Figure 7. World Oil Surplus Production Capacity). Because only limited surplus capacity could be tapped during the forecast period, existing and potential supply problems in Nigeria, Iran, Iraq and Venezuela raise concern, as does the threat of more hurricane damage. These factors, as well as the continued tight supply-demand balance, lead us to expect little relief from current pricing patterns.
Cutbacks in production in Saudi Arabia and damage to production facilities in Nigeria have resulted in a decline in OPEC supplies during the first half of 2006 despite an increase in Iraqi production in June. Not surprisingly, this decline in OPEC supply has led to a counter-seasonal pattern in global oil inventories during the second quarter of 2006, with inventories building only slightly. Organization of Economic Cooperation and Development (OECD) inventories began the second quarter at the upper end of their past 5-year range for this time of year. However, when measured on the basis of how many days of demand the current supply could meet, OECD inventories were only in the middle of their observed 5-year range. The drawdown is expected to make the market even tighter. By the end of 2007, EIA expects days of supply of OECD inventories to finish at the bottom of their 5-year lows for that time of year.
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You can read the entire outlook HERE
In closing, tomorrow will bring another EIA weekly report.
Jim
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Although higher prices have slowed world petroleum consumption growth, expected growth remains strong at 1.6 million barrels per day (bbl/d) in 2006 and 1.8 million bbl/d in 2007 (Figure 4. World Oil Consumption Growth). Most consumption growth will be met by increases in non-OPEC (Organization of Petroleum Exporting Countries) production. The remainder will be met by increases in OPEC production or drawdown of inventories.
First quarter 2006 production data show slightly higher-than-expected non-OPEC production, but growth for the year will likely remain flat at 0.8 million bbl/d (Figure 5. Growth in World Consumption and Non-OPEC Production). This includes 0.2 million bbl/d of total liquids growth from the United States as producers continue to recover from losses suffered during the 2005 hurricane season. Growth in 2007 non-OPEC production likely will rise to more than 1.4 million barrels per day (Figs. 6a-6f, International Oil Supply Charts).
Relative to 2005, surplus world crude oil production capacity, most of which is located in Saudi Arabia, is expected to rise only slightly in 2006 and 2007 (Figure 7. World Oil Surplus Production Capacity). Because only limited surplus capacity could be tapped during the forecast period, existing and potential supply problems in Nigeria, Iran, Iraq and Venezuela raise concern, as does the threat of more hurricane damage. These factors, as well as the continued tight supply-demand balance, lead us to expect little relief from current pricing patterns.
Cutbacks in production in Saudi Arabia and damage to production facilities in Nigeria have resulted in a decline in OPEC supplies during the first half of 2006 despite an increase in Iraqi production in June. Not surprisingly, this decline in OPEC supply has led to a counter-seasonal pattern in global oil inventories during the second quarter of 2006, with inventories building only slightly. Organization of Economic Cooperation and Development (OECD) inventories began the second quarter at the upper end of their past 5-year range for this time of year. However, when measured on the basis of how many days of demand the current supply could meet, OECD inventories were only in the middle of their observed 5-year range. The drawdown is expected to make the market even tighter. By the end of 2007, EIA expects days of supply of OECD inventories to finish at the bottom of their 5-year lows for that time of year.
-----
You can read the entire outlook HERE
In closing, tomorrow will bring another EIA weekly report.
Jim
autofixer
Veteran
China is snapping up FUTURE oil capacity world wide. They want to ensure that they have an uninterrupted supply years out. The more supply or capacity that they remove from world markets will cause/ensure even higher prices in the future. It is not really a conspiracy, it is easy to see why prices are high and are going even higher...if you care to look. The "experts" say that there is about a 20% war premium built in today's prices, even at that, the price should be around $60 per barrel. The Saudis want $40 per barrel, but even OPEC cannot control the price of oil now; with all of the other factors involved.
It is not out of the realm of possibility that we will see $6 per gallon gasoline in the not too distant future...especially if there is another oil patch hurricane or a tanker gets sunk in the Straights of Hormuz (sp).
It is not out of the realm of possibility that we will see $6 per gallon gasoline in the not too distant future...especially if there is another oil patch hurricane or a tanker gets sunk in the Straights of Hormuz (sp).
Fresh from 10 days of bumming around Alaska with my two brothers in a Maule
Spot prices ended the week of 7/7/06 at:
NY Harbor jet - $2.2160
Gulf Coast jet - $2.2339
Los Angeles jet - $2.5168
WTI Cushing crude - $74.65
Holy COW! $2.52/gal at LAX? Is that for real? Any ability for US to tanker fuel into LA to avoid that airport robbery?
Hope you had a great vacation, BoeingBoy.
BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
Had a great vacation, though it seemed we tried to singlehandedly (triplehandedly since there were 3 of us???) consume all the food between Denali National Park and Barrow.
That wasn't a typo. For July 5,6,7,10, & 11 the spot prices were:
NY Harbor - 2.2440 2.2178 2.1862 2.1238 2.1465
Gulf Coast - 2.2590 2.2365 2.2062 2.1488 2.1915
And the one that takes your breath away...
Los Angeles - 2.5418 2.5160 2.4925 2.4038 2.4250
I assume that HP is doing some tankering, depending on prices in the mid-west/west compared to Los Angeles. On a transcon it's probably hard to do much - figure on burning about 20-25% of that tanker fuel due to the increased weight.
Jim
That wasn't a typo. For July 5,6,7,10, & 11 the spot prices were:
NY Harbor - 2.2440 2.2178 2.1862 2.1238 2.1465
Gulf Coast - 2.2590 2.2365 2.2062 2.1488 2.1915
And the one that takes your breath away...
Los Angeles - 2.5418 2.5160 2.4925 2.4038 2.4250
I assume that HP is doing some tankering, depending on prices in the mid-west/west compared to Los Angeles. On a transcon it's probably hard to do much - figure on burning about 20-25% of that tanker fuel due to the increased weight.
Jim
EricLv2Fish
Veteran
- Aug 25, 2005
- 1,171
- 5
Something will happen to keep crude prices rising or at least where they are at. If no major damage is done this hurricane season and Iran doesn't attack Israel...the King of SMOM will fart into the wind and it's toxic waste will land in a country producing less than 1% of the world's oil production...and whoop there it is...4 bucks a gallon. Then Mobil will post a 10 billion dollar profit for the 3rd qtr! Disgusting. Gee, I can't find anything good to say 
