rbtower2

Do you think hiring will start to pick up again? Oil today closed at $78 dollars a barrel and some people are speculating it could drop down to $50-$60 a barrel

SilverandSore

Well, there's this pesky little thing called the stock market and the global financial crisis that may have a little something to do with it. But get your apps in, I'm sure they'll be calling you soon...

reevesofskyking

oil in the short to medium time will follow current trends of the other stock indexes.
I believe it could be in the 40s sometime in the first quarter next year. There is have been a huge loss of money in the last year 8.3 trillion dollars lost since record highs were set just a little over a year ago.

There is the fear factor that is playing hell on the market right now, and investors are starting to think there is no money left to spend in markets and futures, and they have not find out when to stop selling. this will continue the slide of all markets and oil as well. There are weekly inventory reports every wed. morning, and they continue to show inventories rising, and demand falling at the same time. Futures contract will be getting ready to expire around the end of the third week of the month. This leads me to believe that gasoline prices will start picking up thier speed from records highs set this summer.

While the globe appears to setting in place for a recession if not already there, oil and all the other markerts will remained low and under vauled. It would not surprise me one bit if by the end of second quarter, there will be traders/inverstors complaining that oil is under valued. Might spark a short ralley. Opec is saying oil is under vauled now, but with only thier 40 percent of world production, they as always have history has shown lost control of the market.

Even with the emengency meeting of OPEC on NOV 18, anaylyst are expecting 500,000 to 1 million barrel cut, and that is going to start being priced into the market. At the conclusion of their meeting, oil prices are not expected at this time to stop retreat.

I am not going to be surprised to see oil anywhere from 48.75 to 62 something in the next 6 to 8 months. I think we are going to get used to seeing oil in the mid 70's more than it being anywhere else.

Reeves

Pilotpip

Get that app in. You're first in line after the 3000 or so pilots that are currently furloughed.

ugflyer

Tell you what guys, the only reason that oil is dropping is the state of the financial markets which pushes demand for oil down. And when the markets are doing bad, then people will travel less and so demand for air travel goes waaaay down. So airlines stop hiring as a result. What you want to happen is a strong market with low oil prices. If you are patient enough, that will happen but be prepared to wait a few years. Just because oil prices drop to 5 dollars a barrell does not mean airlines will go on a hiring spree........

BE19Pilot

I'd expect that oil is going to continue to drop in price as the drop in demand is transmitted back to the distributors, wholesalers and suppliers. Travel worldwide can be expected to drop off markedly in the next few months.
The overall damage to our domestic economy and it's implications for the rest of the world is going to be difficult to measure. For one thing, the market sell-off, credit crunch and banking crisis hasn't bottomed out yet. In the short-term there is going to business failures, personal bankruptcies and foreclosures galore in the coming months. Ironically, this will also be the time when many people and businesses will get rich too. If you are in a good equity position with good credit, businesses and individuals will be capitalize upon it. Weaker companies and individuals will suffer greatly. It is a sad fact, but there is going to be alot of personal carnage resulting from the greed of certain individuals charged with operating our banking and mortgage industries.
As for the airlines, the current crisis will expose the weaker airlines and we may see more Ch. 11 and perhaps even a Ch. 7 or two. I certainly hope not, but if you think the airlines are over-capacity now? Wait until the next six-months rolls around and instead of battling high-fuel costs. Managers are going to be facing hideously loe load factors, and will have to respond by lowering fares. This will benefit those that can afford to travel, but in the long-run the airlines will suffer from a drop in business.
On the bright side, I think that the money supply is going to shrink as the credit crunch continues, and this will lead to the dollar making a comeback. We will have a recovery, but it's difficult to say how long it will be until things return to "normal".

Regards,

ex-Navy Rotorhead

Oskeewowow

Doesn't mean too much unless refining costs come back down. In Chicago today I saw gas for $4.10/gal. Keep building your time and put yourself in the best position to jump on a job when they start hiring again.

CheyDogFlies

Absolutely not. The price of oil has little impact on whether or not your company sends you to that business meeting or if you decide to go see grandma this year.

bradeku1008

Dang, $4.10!! that is price gauging. We are paying 2.79 in Dayton and Cincinnati.

rickair7777

The economy may still do enough damage to airline revenues to make up for any drop in fuel prices.

Also once the furlough/fleet reduction starts, it's hard to stop it.

Lower fuel prices might not change much anyway...the very fact that we now know that oil can shoot up to $150 in a matter of months or weeks will likely keep managers pretty conservative going forward.