Thread: Wow Tough Day
View Single Post
Old 05-11-2011 | 10:01 AM
  #51  
rickair7777's Avatar
rickair7777
Prime Minister/Moderator
Veteran: Navy
 
Joined: Jan 2006
Posts: 45,143
Likes: 801
From: Engines Turn or People Swim
Default

Originally Posted by BoilerUP
I know what you're saying in terms of economic condition & energy prices, but in the crazy times we live in, the raw price of crude oil ain't remotely close to the cost of refined fuel to end users...like you & me in our cars, or airlines by the millions of gallons.

Light Sweet crude closed yesterday just below $104/bbl with Brent crude just shy of $118/bbl, yet almost all refined fuel prices are at or, in some cases, actually above where they were in July 2008 with oil pushing $150/bbl.

Maybe the ATA needs to build a refinery to provide fuel to airlines...that'd probably be cheaper than incurring billions in collective losses...
It doesn't matter too much what a specific refined product costs, although Jet A can directly impact airline economics. There are so many different products derived from crude oil that high oil prices will hurt the economy on many fronts (and vice versa).
Reply