Opec President Sees No Problem With $60 Oil

[Winglet]

"$50 oil will not play a big role in slowing up growth of the economy. Some analysts say even $60 oil will play a small role in affecting growth," said OPEC President Sheikh Ahmad al-Fahd al-Sabah of Kuwait.

Looks like $50-60 oil is going to be the new benchmark.

Predictions anyone?

US Air - GONE
UAL - GONE
DAL - 1st BK
AA - 1st BK
CAL - 1st BK
NWA - Darn close to BK
JB - Losses
SW - sliding

ARTICLE:
http://money.excite.com/ht/nw/bus/20050130...-l30542844.html

 

[libertybell]

Sounds like to me the execs should start cuttings fares again!

That will really work well!

 

[700UW]

CAL has all ready been in Bankruptcy twice.

 

[nycbusdriver]

CAL has all ready been in Bankruptcy twice.

[post="243843"][/post]​

I think CAL, USAir, AWA, and Hawaiian hold the proud distinction of declaring bankruptcy twice.

 

[javaboy]

OPEC always says one thing (like limits on exports) and does another (another member makes up the shortfall).

60.00 is unsustainable for the US economy much less the airline business.

OPEC already realizes they are dealing with less total revenues than when oil was in the sub 40 area. (remember as oil rises so does the cost of delivering the product thus reducing your profit)

OPEC has said (many many times since the 70s.) when we learn our lessons of the early 70s, we do not wish to kill the golden goose just choke it a little......

if the US economy slows again it will take years for OPEC to recover lost revenues (the wild card being CHINA of course) and already "experts" (if you can call them that) are seeing indications that CHINA can not sustain its current growth rate.

will it hit 60? maybe will it stay there , no way. and that has little to do (even though its direct effects are most severly felt) with the airline industry.

 

[A320 Driver]

I don't hear any people bitching except the airlines. What the heck is wrong with the consumers in this country? Don't they have to pay the same thing I'm paying for gas? How about the trucking industry? How does this bode for them or are they smart enough to pass this cost along to the customer (unlike the airlines). Those people over there sitting on the oil intend to choke this country to death and we are going to let them without so much as a whimper.

A320 Driver

 

[usairways_vote_NO]

A320 Driver

[post="243866"][/post]​

Ask the cockroachs and others who want to pay even less and take more food of your table.

 

[Lou]

I always thought that every time they jack up the price of Oil we should jack up equally the price of food (since they don't grow anything in the dessert). You know, a little tit for tat. I realize of course this would never happen but I get aggravated at the OPEC Cartel that seems to hold the world hostage instead of a free market system that should be in existance.

 

[delldude]

about that transformation plan........

 

[Winglet]

The question is will the price of oil drop to below $40 in time to save any of the airlines?

I think not.

As an academic thought, I'd be interesting to see "AMERICAN" airlines go Bk. A lot of symbolism there. GW is bankrupting the U.S. economy with his wild spending . . why not his Saudi buddies bankrupting our "national" airline?

 

[autofixer]

As I have said on this site countless times, the price of oil is a supply and demand issue. The price of oil will not fall below $30 per barrel under current circumstances. China and India are now in competition for the world's oil. China, just this past week, concluded several new trade agreements with Venezuala-an OPEC member.

 

[Fly]

As an academic thought, I'd be interesting to see "AMERICAN" airlines go Bk. A lot of symbolism there. GW is bankrupting the U.S. economy with his wild spending . . why not his Saudi buddies bankrupting our "national" airline?

[post="243883"][/post]​

American is NOT the 'national' airline. What gave you that idea? Our national airline is whomever offers the lowest price that week. The "$" is this nations national symbol.

 

[goingboeing]

If OPEC wants to charge $100.00 per barrel and they can get it then its not a problem.If people and businesses are willing to pay the increased cost at the pump then this is nothing more than free enterprise at work.If they price it too high then people will reduce or stop buying gasoline.Then they will know they have priced it too high.[basic supply and demand economics] I WILL NOT pay $5.00/gal next week for gasoline for my car.If the price goes that high then I'll stay home and tell my creditors to come and get everything because I can't afford the gasoline to drive to work.But then,AA won't be flying any airplanes if fuel is that expensive so I won't have a job to go to.

 

[Dog Wonder]

Unfortunately the President of the USA doesn't see anything wrong with $60 a barrel either.

 

[runabout319]

If the price of oil continues to increase, there will be more incentive to develop alternative fuel sources. For example, if gas is $2 a gallon and an alternative fuel is developed that costs $3 a gallon consumers would stay with gas. If on the other hand gas is $4 a gallon, there is an economic benefit to produce and use an alternative fuel source.