Oil Prices

[Harbour Dweller]

Light, sweet crude for November delivery dropped as low as $US68.57 a barrel on the New York Mercantile Exchange before paring some of its losses to trade down $US3.14 at $US71.40. It was crude's lowest trading level since June 27, 2007.

Crude has now fallen 52% since surging to a record $US147.27 on July 11. Some energy analysts have predicted oil could fall as low as $US50.





I look forward to the Friday updates from Tony & Nick.

[canuck revenger]

I'm sure there is a special edition of CX NEWS being prepared explaining how fortunate we are as a company to see the oil price fall. It will have a lead editorial by TT (smiling photo) stating that the 13th month is now secure, and profit sharing is being calculated. He will compete with AA who have just declared a good profit, and announced a special bonus for their employees who have worked hard over this past difficult year. Can't wait. :ok:

[ron burgandy]

Maybe sometime soon our airbus fleet can stop being overtaken by every aircraft in the sky, other than maybe a dash 8.:}

[bekolblockage]

Ah yes. And hopefully you can make your planned level by the boundary and not get stuck at F270 until Darwin coz everyone else got the good levels. Take out the derate. Penny wise pound foolish bean counters.

[Veruka Salt]

The derate has nothing to do with fuel saving, only engine wear.

A derated climb actually uses more fuel.

[On the beach]

Probably hedged at $140 !!!

On the Beach

[rick.shaw]

Yes. Can't help thinking what comeback the management have about this. I see the latest update goes on about the reduced load factors(especially front end), and I'm sure it's totally true and it's going to hurt. However, barring any huge screwup in the fuel hedging department, the overall figures aren't going to be catastrophic.

Am I correct in assuming the facts and figures quoted by management these days are being compared to a record year (last year)? I would like to see some current figures put up against an 'average' year, if there is such a beast. Perhaps that might put things into perspective a bit more realistically.

[ACMS]

Yes, I just read the latest SPIN from our so called "Managers"

I also just looked at the latest Jet Fuel price monitor from IATA.

Each week IATA updates its jet fuel price index to provide the latest price data from the leading energy information provider Platts. The weekly index and price data shows the global average price paid at the refinery for aviation jet fuel.

This week's price of aviation jet fuel is DOWN 15.8% on 1 week ago, DOWN 24.8% on 1 month ago and ..............................WAIT FOR IT..............................DOWN 0.9% on 1 year ago


So assuming fuel is no longer a factor then our RECORD PROFIT last year should still work out to a nice profit this year?

Funny how the Fri reports from "un-smiling Tony" and Tricky Nick didn't mention ANYTHING about fuel again

[Fac6]

A friend of the family yesterday was on a full fare out of London and begged by London to off load and take a later flight.

Another friend on the same flight trying to staff travel says that London have been turning staff and full fare pax away for 2 days!

Looking at the Staff travel system, all red this week in all classes for basically all of Europe.

According to company no one is traveling? I'm confused :suspect:

[Flaps10]

FAC6, the same has been going on in Toronto all week. On the 15th economy was oversold by 25. Business was filled up with some of the overflow. ID and even an FOC along with some full fare pax were left behind. Seems impossible to get out of YYZ without a J1 these days. Looking ahead, November looks the same. Good for the company, crap for staff travel. Wish they didn't get rid of the 3 times weekly Airbus flight.

[Arfur Dent]

If the loads are so bad, why can't I get a confirmed FOC LHR-HKG early December. Cupid loads to/from Europe don't look bad at all. Fuel back down to pre crisis levels. Comparing this year with a world record year last year looks flawed. Come on Tony - we may look stupid but........:cool:

[ACMS]

This week's price of aviation jet fuel is DOWN 6% on 1 week ago, DOWN 28.3% on 1 month ago and DOWN 11% on 1 year ago

[spannersatcx]

school holidays in the UK:eek:

[broadband circuit]

Some highlights (bold emphasis added by me):

Oil prices fell sharply on Wednesday, reaching prices not seen since June of last year

U.S. crude for December delivery lost $5.43 to end the session at $66.75 a barrel in New York.

Wednesday's settle price was the lowest since June 13, 2007, when oil ended the day at $66.26 a barrel.




Full story:
Oil settles at 16-month low after boost in inventory - Oct. 22, 2008 (http://money.cnn.com/2008/10/22/markets/oil/index.htm)

[Dead Head]

Why doesn't the fuel price inquiry on intra cx work anymore?
Says "access forbidden"

[404 Titan]

Dead Head

It's never worked.

[DDDOF]

For some reason it only works at work, not at home????
Looked at it yesterday and it said $2.08 per gallon, down from near $3 dollars near the start of the month

[Harbour Dweller]

Crude oil tumbled to a 16-month low as OPEC's decision to slash production by 1.5 million barrels a day failed to ease concern that the global economic slump is curbing fuel demand.

"At this stage it looks like we are at the edge of a bottomless pit and prices are heading quickly toward $US50," said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. "OPEC really needed to take the bull by the horns and make a bigger cut."

The 13 members of the Organization of Petroleum Exporting Countries agreed to lower supply starting in November, oil ministers said today at a meeting in Vienna. Prices have dropped 56% from the record $US147.27 a barrel reached on July 11 as stock markets declined.

Bloomberg

[Happydays]

Not only did the price of crude oil drop but the Hong Kong Dollar got very strong.

Its 42% stronger against the South African Rand for example.
The US was 2.05 against the pound now only 1.55.

Surely that will make buying fuel in other countries allot cheaper aswell...

[ByAirMail]

Its 42% stronger against the South African Rand for example

ZAR is not a good barometer, this is not due to stong $ but declining ZAR against every other currency, only one flight a day to R.S.A. is not a big impact on a fuel bill as big as CX's. Tickets out of R.S.A are paid in Z.A.R.

In general, yes, fuel cost help more then any management ( including SQ ) would admit.

[Happydays]

True, but all currencies are taking a beating against the HKD/USD. A aussie dollar now cost only HKD4.85. 2 weeks ago it was HKD6.0

[ACMS]

The latest IATA Platts Jet Fuel price is out:

week ending 24th Oct 2008

at $85/b, down 6.5% on 1 week, down 35.5% on 1 month and DOWN 18.4% on 1 year ago.

[Arfur Dent]

Current thinking seems to be that oil will continue to reduce in price until about end Nov, then start the upward move again. OPEC cutting production too (thanks guys). Hedging opportunity??

I get the impression that the world will only find out what the true intentions in the US are once Obama actually gets elected. Then he has to deal with the financial adventures, the war, the price of gas etc etc. Good luck matey!!

[Apple Tree Yard]

...Obama gets 'elected'...? As of 5 minutes ago, the newest Gallup poll shows McCain is only 2 points behind. For the sake of the US economy, strategic security and freedom ...pray John wins. :ok:

[arse]

OPEC have targetted $100 a barrel. Economics 101 says they will cut supply until demand gives them the price they want. Having cut output by 1.5 million barrels a day last week, expect more cuts if the price does not increase soon.

As for Obama v McCain and the effect on the economy: It doesn't matter who gets in, they are inheriting a mess and neither is capable of fixing it.

Remember if you are voting for the lesser of two evils, you are still voting for evil!

[SOPS]

my God..please..not another 4 years of this Bush rant of "freedom". The only thing the moron could ever say when anyone was against his policies was "they are against freedom". A world free of Bush will be a much better place..and please please dont give us 4 more years of McCain talking like Bush:ugh:

[777300ER]

...Obama gets 'elected'...? As of 5 minutes ago, the newest Gallup poll shows McCain is only 2 points behind. For the sake of the US economy, strategic security and freedom ...pray John wins.

Are you out of your $#%ing mind?? I think I could run the country better than McCain and Palin. Since US policy affects so many people other than Americans, maybe we should all be allowed to vote.

[raven11]

Thread drift but here goes....

I think you'll find that most Americans would rather have a warrior who suffered 5 years as a POW, when he could have gone home after one year but volunteered to say behind. Someone with 25 years of senate experience bucking the "system", as opposed to a smooth talking socialist who's NEVER voted against his party, and who's sum experience is that he wrote two books about himself!

Oh yah....and keeps very "questionable" company!

[Freehills]

Further thread drift. Think we'll find they have these things called "elections" to find out who most Americans would rather have...

[777300ER]

I don't give a rats a$$ what either candidate did before they got into politics. I care more about how the next president will manage the myriad of issues they are dealt over the next four years. Which candidate will make responsible decisions in a mature and measured manner? Based on McCain's choice of VP, it is a little hard to respect his decision making abilities. The US currently owes over 10 trillion dollars to other countries (increasing by over 3 billion a day) and McCain wants to lower everyones taxes and keep spending billions of dollars on wars which will never be won. I am not a financial expert by any means, but I know that's not the way forward.

As for the questionable company statement, I really hope your joking. Are we talking about reality or dirty politics? Obama was 8 years old when Ayers was involved in an Anarchist group. The guy has since (30 years ago) regretted his actions and reformed himself into a model citizen . Questionable company is teaming up with a stupid neoconservative twit who thinks living in the state closest to Russia makes her an expert on foreign relations. It's obvious why McCain chose Palin but did he forget that he would actually have to work with her for four years if he won the election?

You weren't kidding about thread drift. We could debate this on here for weeks and frankly I'd rather do it in the bar as I hate typing. All I know is I can't imagine another 4 years of the same backwards policy from the US. Over the last 8 years I have watched the US go from being a respected, enviable nation, to being more unpopular than China. It's DEFINITELY time for change.

[raven11]

777ER

You're right we could debate this for weeks.....

I'll still stick with the warrior and hero.

[Thunderbird4]

or watch this....
John McCain - Lost in Space (http://www.brasschecktv.com/page/325.html)

[Lowkoon]

If only they could secure similar reductions in their fines for illegal activities. Shouldnt a "ZERO TOLERENCE POLICY" apply to knowingly participating in corporate mis doings? :confused: Yet human error attracts a zero tolerance policy? Nice....