Originally Posted by Sink r8

I think it means the squeeze is on for marginal producers. That includes countries that aren't well managed, and it includes little guys here in the US.

As soon as that gets resolved, and enough of the little guys go bankrupt or get bought out by the big guys, as soon as enough fragile countries get into deep unrest, as soon as Russia can't take it anymore and finds a new way to put geopolitical risk on the table, it goes up.

Then we realize that capacity is still greater than demand, peak-oil is nonsense, and it comes back down.

Which suits the big traders fine, because volatility is how they squeeze money out of you and me.

So I guess for airlines, it means the benefits are meaningful, but not guaranteed over any significant length of time.

I hope it stays just expensive enough that people keep making energy-conscious decisions, and demand growth doesn't pick up.