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Why the big discrepancy in oil prices? Why the big discrepancy in oil prices?
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Old 02-02-2011, 04:25 PM   #1 (permalink)
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Default Why the big discrepancy in oil prices?
Today, February 2, 2011, the closing prices for oil/jet fuel oil were:

Oil Price
$90.86
0.09 (0.10%)

Jet Fuel
$117.89
1.49 (1.28%)

Seems to me the airlines are getting ROYALLY SCREWED. Why is their a 30% surcharge for oil we use? Looks like it's about time someone started looking into/doing something about this. No wonder we're having such a hard time making money. The oil companies are reporting RECORD profits AGAIN and the airline employees (management NOT INCLUDED) are going to be taking it in the shorts again if this keeps up. Enough is enough................
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Old 02-02-2011, 04:28 PM   #2 (permalink)
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OMG someone just sneezed.....that could send oil prices through the roof, better go invest.
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Old 02-02-2011, 04:37 PM   #3 (permalink)
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Default
Quote:
Originally Posted by ewrbasedpilot View Post
Today, February 2, 2011, the closing prices for oil/jet fuel oil were:

Oil Price
$90.86
0.09 (0.10%)

Jet Fuel
$117.89
1.49 (1.28%)

Seems to me the airlines are getting ROYALLY SCREWED. Why is their a 30% surcharge for oil we use? Looks like it's about time someone started looking into/doing something about this. No wonder we're having such a hard time making money. The oil companies are reporting RECORD profits AGAIN and the airline employees (management NOT INCLUDED) are going to be taking it in the shorts again if this keeps up. Enough is enough................


The difference is the cost of converting it to Jet fuel. Referred to as the "crack price".
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Old 02-02-2011, 05:09 PM   #4 (permalink)
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There is a chemical difference between gasoline, jet fuel and other petroleum products. The market, and speculation, drives the price of each of these.

Crack spread - Wikipedia, the free encyclopedia
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Old 02-02-2011, 05:24 PM   #5 (permalink)
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It is the called the "Crack Spread"

I think the Egypt issue and the questions around access to the Suez Canal are the reason for the recent rise.

Speculation generally widens the spread of these products, which is commonly referred to as the Crack Spread.

Part of the reason many Industries are calling for the end of Oil Speculation.
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Old 02-02-2011, 05:27 PM   #6 (permalink)
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S.O.S.
S.O.S. Now - Stop Oil Speculation Now
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Old 02-02-2011, 05:38 PM   #7 (permalink)
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Quote:
Originally Posted by Monkeyfly View Post
The difference is the cost of converting it to Jet fuel. Referred to as the "crack price".
Quote:
Originally Posted by chuckyt1 View Post
There is a chemical difference between gasoline, jet fuel and other petroleum products. The market, and speculation, drives the price of each of these.

Crack spread - Wikipedia, the free encyclopedia
Quote:
Originally Posted by acl65pilot View Post
It is the called the "Crack Spread"

Hey, anyone know what a "crack spread" is?
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Old 02-02-2011, 05:39 PM   #8 (permalink)
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Position: Legacy FO
Posts: 3,272
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Quote:
Originally Posted by ewrbasedpilot View Post
Today, February 2, 2011, the closing prices for oil/jet fuel oil were:

Oil Price
$90.86
0.09 (0.10%)

Jet Fuel
$117.89
1.49 (1.28%)

Seems to me the airlines are getting ROYALLY SCREWED. Why is their a 30% surcharge for oil we use? Looks like it's about time someone started looking into/doing something about this. No wonder we're having such a hard time making money. The oil companies are reporting RECORD profits AGAIN and the airline employees (management NOT INCLUDED) are going to be taking it in the shorts again if this keeps up. Enough is enough................
Economics isn't your forte.
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Old 02-02-2011, 08:15 PM   #9 (permalink)
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Quote:
Originally Posted by Justdoinmyjob View Post
Hey, anyone know what a "crack spread" is?
Alright. I gotta throw in a "so to speak" for this entire thread. Carry on.
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Old 02-02-2011, 09:21 PM   #10 (permalink)
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Quote:
Originally Posted by Justdoinmyjob View Post
Hey, anyone know what a "crack spread" is?
I have an overnight in Bangkok. I will see if I can do some investigating into what a "crack Spread" is.
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