Originally Posted by
Bucking Bar
However, the crack spread has been reduced considerably since we got into the business. Arguably our investment prevents us (and our competitors) from being gouged by Wall Street speculators.
Technically, Delta
is a speculator. The only claim Delta has to being a bona fide hedger is the Trainer operation. Since there is no robust jet fuel futures market (if there's a market at all, I've never been able to find one), Delta has to speculate on a mix of crude oil, unleaded gasoline, heating oil, etc. to synthesize a "hedge" on jet fuel. But, since Delta doesn't consume/produce any of those products outside of Trainer, it is a speculator in those markets.