Oil prices still falling

[WestIndian425]

They hedged fuel to reduce risk. Had they not hedged they would have been speculating that the fuel price would go down, which is riskier than hedging. Once they purchased the options for fuel at a particular price they became indifferent to the movement of the market, at least as indifferent as one can be at $140/barrel anyway.

Now that the price of fuel dropped dramatically we can see that they have lost money on the value of their options however this is probably outweighed by the profits they will realize from the lower cost commodity. A lot of people say company X lost Y dollars from fuel hedging -- well, it is not really an accurate comparisan unless you also account for the amount of money they made from low fuel prices.

I see...

Depends on the futures contract.

Thanks.

It's sweet gas fell a buck/gal but my 401k has lost thousands so I guess pick your poison?

I'd rather have gas where it was a few months ago and my 401k where it was a few months ago.

:yeahthat: I couldn't agree more! LOL

 

[Clocks]

I'd rather have gas where it was a few months ago and my 401k where it was a few months ago.

Heh what's -38% this year between friends?

Gotta say I'm glad I have almost 40 years to go.

 

[wheelsup]

The airlines would MUCH rather have falling demand than skyhigh fuel. Even with falling demand the chances of pulling a profit are still high.

By pulling a profit do you really mean going bankrupt? For example United, Northwest, Delta, US Airways (twice), Midway, and countless others. All when gas was low but demand was even lower.

 

[wheelsup]

Heh what's -38% this year between friends?

Gotta say I'm glad I have almost 40 years to go.

The scary thing is there have been multiple 20 year periods where the stock market did 0% for that time...so by the time we recover you might only have 20 years to go...

 

[L-16B]

Speaking of oil - was anyone else disgusted that Obama said that the first thing he does when he gets in office is cancel the bill that Bush passed - meaning cutting all offshore drilling ?

Lame :banghead:

 

[Vyse]

I hope the airlines are taking this oppty to at least buy lots of hedges at this current lowered price. Of course knowing them, most probably already hedged their oil for the next 10 years at $145.

 

[derg]

Speaking of oil - was anyone else disgusted that Obama said that the first thing he does when he gets in office is cancel the bill that Bush passed - meaning cutting all offshore drilling ?

Lame :banghead:

Umm, offshore drilling was allowed before the bill and will be allowed if they cancel the "new" bill.

 

[killbilly]

I haven't had to pay for a tank of gas out of pocket in several weeks because I've been using my car for business.

But, I did just find out that 100LL is down to $3.00 a gallon out at AQO, where I'm flying tomorrow night.

I was ecstatic.

 

[Bigey]

I just like it because every dollar it drops, the tighter the noose gets around the necks of Chavez and Ahmadinejad. Their saber rattling has been directly fueled by profits from the sale of their oil.

I think not, but that's not here or there.

As if the price of oil really helps ahmadinejad.

That's like saying "man, the price of food is so expensive for the ventrilloquist, lets stick it to the doll!"

Thats about the same relevance.

He was in the spotlight before oil was high, and will continue to be in the spotlight as oil falls.


Oh and what noose are you talking about? The ones around us? If you havent picked up, we're still getting our oil from them, just at a reduced rate. I'd say, we're still hanging ourselves....

 

[Velocipede]

Heh what's -38% this year between friends?

Good thing my advisors put me in cash last winter. I've actually made a couple per cent this year.

 

[granlistillo]

Umm, offshore drilling was allowed before the bill and will be allowed if they cancel the "new" bill.

Doug,
From a guy who voted for the "other guy", glad to see Bush gone and has GREAT hopes for President Obama.
As I remember, during the campaign he reversed himself and was supporting opening drilling in areas that were previously "verboten". Now this is coming off the table????? Big mistake!

The only long term hope for our economy, nay the World's economy is cheap energy. Cheap oil (or energy if you will)- ie oil < $15/barrel was what fueled the global economy in the 90´s. i hope the mantra "drill baby drill" as an interim measure coupled with a move towards greatly increasing renewable and sustainable energy is the new policy.

I hope any bailout of Detroit as proposed by the new Obama admin, will not cause the death of innovation and signal a return to business as usual. Keep an eye on GM`s Volt...

We get cars off the oil tit, and plugged into a plethora of alternatives, we should see jet fuel low, and a strong economy filling seats.

OJALA

 

[Hootie]

I am really looking forward to find out what certain airlines paid what for their recent hedges.

 

[Hacker15e]

I'd rather have gas where it was a few months ago and my 401k where it was a few months ago.

Unless you plan on actually withdrawing funds from your 401K in the near future, I don't know that I follow your logic.

I have nearly 30 years before I start tapping into that account, so as far as I'm concerned the value of my retirement accounts is just a number.

 

[surreal1221]

http://forums.jetcareers.com/general-topics/75972-great-speech-on-oil.html

Of course since some felt the need to make the poor girl a laughing stock, it clearly was not viewed by those who might actually give a #### about the geo-political and resource security bits of her speech. Nevertheless. . .

 

[SpiraMirabilis]

http://forums.jetcareers.com/general-topics/75972-great-speech-on-oil.html

Of course since some felt the need to make the poor girl a laughing stock, it clearly was not viewed by those who might actually give a #### about the geo-political and resource security bits of her speech. Nevertheless. . .

Smart lady.

 

[samuel_57]

with the oil prices going down, i wouldnt celebrate yet.