Crude Oil And Its Effect On Us Airways
- Thread starter USA320Pilot
- Start date
markkus757
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- Jul 26, 2004
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A320 - quit putting up mindless news articles and think logically for once in your life. It seems that most people(including yourself) are in denial about the situation. The only way this problem gets solved for everyone is to pressure Washington to get off their ass and research alternative fuels. The demand has to go down. And no, I don't think airplanes will switch fuels anytime soon; I just think it would release a lot of pent up pressure for industries that need to use fossil fuels. No wonder everyone here thinks you're a voice box for management, you just repeat everything instead of thinking.
OP
USA320Pilot
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- May 18, 2003
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usairways_vote_NO
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- Sep 9, 2002
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BoeingBoy said:
You are killing me while the oil market kills the airlines!!
Catch this week Barron's. There is a piece in the Market section that looks at world oil and steel supply and demand. Seems that there is a lot of oil inventory out there in recent weeks. Too, China has been slackening in its oil thirst of late. Several more items pointing toward a lowering of crude prices, though no one seeing anything lower than $40 ever again.
BoeingBoy
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- Nov 9, 2003
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In case anyone missed it in the rush of Republic news, JetBlue raised their prices today.
Rare fare increase for JetBlue Airways
With WN & B6 both raising fares, maybe the legacies can raise fares in those "competitive" markets where they didn't apply the previous fare increases....
Jim
ps - just to add something on oil...
NYMEX $54.72/bbl
WTI $55.05
Brent $53.72
Rare fare increase for JetBlue Airways
With WN & B6 both raising fares, maybe the legacies can raise fares in those "competitive" markets where they didn't apply the previous fare increases....
Jim
ps - just to add something on oil...
NYMEX $54.72/bbl
WTI $55.05
Brent $53.72
BoeingBoy said:
Not a senior moment at all - you are correct - oil is priced in dollars, and IMO the decline of the dollar has exacerbated the situation. While still expensive, oil is not as expensive for the Euro-based economies as the dollar has fallen substantially against the Euro.
jimntx
Veteran
BoeingBoy said:
You are correct. Just as English is the lingua franca of the airline business around the world, oil is priced in dollars.
The reason is that when OPEC was formed to push back against the (then) 7 sisters--Humble Oil (now Exxon), Texaco, Shell, Chevron, Amoco, BP, and Gulf--who controlled the world's oil fields, the major consumer of oil by a huge margin was the U.S.A. Also, at that time, the U.S. dollar did not float against other currencies; so, it was the one truly "stable" currency in the world. The Middle Eastern sheiks even then saw their future as permanent exile in some French Riviera villa a la King Farouk of Egypt and the Shah of Iran. The sheiks wanted the stashed millions in their Swiss numbered accounts to be U.S. dollars.
usairways_vote_NO
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- Sep 9, 2002
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http://www.opec.org/library/
Does OPEC Set Crude Oil Prices?
One of the most common misconceptions about OPEC is that the Organization is responsible for setting crude oil prices. Although OPEC did in fact set crude oil prices from the early 1970s to the mid-1980s, this is no longer the case. It is true that OPEC's Member Countries do voluntary restrain their crude oil production in order to stabilize the oil market and avoid harmful and unnecessary price fluctuations, but this is not the same thing as setting prices.
In today's complex global markets, the price of crude oil is set by movements on the three major international petroleum exchanges, all of which have their own Web sites featuring information about oil prices. They are the New York Mercantile Exchange (NYMEX, http://www.nymex.com, the International Petroleum Exchange in London (IPE, http://www.ipe.uk.com and the Singapore International Monetary Exchange (SIMEX, http://www.simex.com.sg.
The Web sites of the Paris-based International Energy Agency (IEA, http://www.iea.org and the US Energy Information Administration (EIA, http://www.eia.doe.gov, also have extensive historical information on oil prices.
Does OPEC Set Crude Oil Prices?
One of the most common misconceptions about OPEC is that the Organization is responsible for setting crude oil prices. Although OPEC did in fact set crude oil prices from the early 1970s to the mid-1980s, this is no longer the case. It is true that OPEC's Member Countries do voluntary restrain their crude oil production in order to stabilize the oil market and avoid harmful and unnecessary price fluctuations, but this is not the same thing as setting prices.
In today's complex global markets, the price of crude oil is set by movements on the three major international petroleum exchanges, all of which have their own Web sites featuring information about oil prices. They are the New York Mercantile Exchange (NYMEX, http://www.nymex.com, the International Petroleum Exchange in London (IPE, http://www.ipe.uk.com and the Singapore International Monetary Exchange (SIMEX, http://www.simex.com.sg.
The Web sites of the Paris-based International Energy Agency (IEA, http://www.iea.org and the US Energy Information Administration (EIA, http://www.eia.doe.gov, also have extensive historical information on oil prices.
jimntx
Veteran
No, OPEC has never set prices, ever. They set production quotas (which most of the members have violated or ignored at one time or another) which, in theory, would affect price--supply and demand and all that, don't you know.
I was just saying that whatever the price, the sheiks wanted (and still do) to be paid in U.S. dollars (which has chapped la belle France's rosy behind for a long time).
I was just saying that whatever the price, the sheiks wanted (and still do) to be paid in U.S. dollars (which has chapped la belle France's rosy behind for a long time).
