Delta's domestic reductions.

[INOP]

Oil dips below $100 per barrel

http://www.thestar.com/Business/article/348265

 

[siucavflight]

Oil is at $100.80 right now. Just fell another $4 so far today. Talk about doom and gloom... I bet you're a blast to fly with

So its going to stay there? The trend is up my friend.
The Europeans have been paying much more then us for oil for a long time, as the Euro continues to strengthen and the dollar continues to fall our fuel prices will continue to rise.

 

[SiuDude]

So its going to stay there? The trend is up my friend.
The Europeans have been paying much more then us for oil for a long time, as the Euro continues to strengthen and the dollar continues to fall our fuel prices will continue to rise.

Not true. A barrel of oil costs about the same for European deliveries as it does for North American deliveries. It is true that European consumers pay more for refined products due to higher taxes. However, that is somewhat negated by the very weak dollar since all crude oil transactions are in USD.

 

[siucavflight]

Oil is at $100.80 right now. Just fell another $4 so far today. Talk about doom and gloom... I bet you're a blast to fly with

Yep, sure lasted for a while under 100 dollars a barrell, we will never see oil less then 100 dollars a barrell, on ocasion it may go there for a day or two, but like I said the trend is up. Most industry experts believe that it will level off at 165 per barrell.

 

[cq43vt17t]

I know that F8 is reducing their 50 seat capaticity for Delta by eliminating 8 ERJs (mostly MCO flying). However they have another 6 CRJ900s coming. I wonder who is going to be hit also with the 50 seater reductions.

 

[N2264J]

Re: Delta's domestic reductions

We had something similar go on the 70's.

In the 70s, we hit "peak oil" in the United States proper, or in other words, the downhill side of the supply bell curve.

Today, we're hitting peak oil globally. So in 2020, there will be just as much oil as there was in 1980 but since the supply is on the decreasing side of the curve, costs will increase accordingly.

If you think Exxon making several billion dollars profit in one quarter is obscene now, just wait.

 

[Tarzan]

If you think Exxon making several billion dollars profit in one quarter is obscene now, just wait.

Profit margins have remained the same at around 8%. Much of the reporting has been sensationalized by reporting gross profit instead of profit margins because BILLIONS sounds much better than 8 cents on the dollar.

 

[CFI2766]

Yup, it does appear that there are more managerial trips to the concession store in our future. The term 'store' is slightly inaccurate, as management won't be stuck with paying for the trip to the concession store; we will.

Air travel will go on, however. Folks will pay (as little as possible [as they should]) to get from point 'A' to point 'B'. For the moment, the best way to do this is by air.

 

[Max Powers]

Hate to break it to you but there is no "OIL BUBBLE". Fundamentals are clear our world can not produce anymore and OPEC is at peak production. Everyone is at max capacity and new discoveries in the gulf, russia and china are just coming online and will only help to stem the oil production resultant decrease when Saudi arabia hits there peak production about 2012.

 

[Superpilot92]

I cant wait until a viable alternative to oil is found. Nothing will drop the price of oil like a replacement for oil on the horizon!! I can just see the big oil companies faces once they realize their strong hold on the world has come to an end!

 

[siucavflight]

Doubt it. The market will adjust to the current fuel prices. Once the oil bubble pops, the industry will be wide open again unless the unthinkable happens again.

Oil bubble, what a joke!!
Here is also where I think that the top will be
http://www.moneymorning.com/ppc/oil_187_jh8.html?gclid=CKuah5rjvJICFQGIPAodiDhsLg

 

[veneratio]

Don't forget that the dollar is backed by oil for all intents and purposes, so, when the dollar recovers sometime down the road, the price of oil will decline. So, yes, the bubble will pop.

Could not agree more. Oil producers sell their product in dollars. Every time the dollar falls against the Euro, oil prices go up. When the dollar gains it's value around the world, then the price of oil will go down. Until that happens, we are screwed.

 

[USCtrojan]

Could not agree more. Oil producers sell their product in dollars. Every time the dollar falls against the Euro, oil prices go up. When the dollar gains it's value around the world, then the price of oil will go down. Until that happens, we are screwed.

Analysts are stating the oil market is being driven by speculators. Hopefully that will change soon. We've seen a slight decline, hopefully we'll see a bigger one.

Trojan

 

[~~~^~~~]

If you think Exxon making several billion dollars profit in one quarter is obscene now, just wait.

Yes, but if you are right, Exxon is literally in liquidation as we ponder the question.

 

[BoilerUP]

Oil bubble, what a joke!!
Here is also where I think that the top will be
http://www.moneymorning.com/ppc/oil_187_jh8.html?gclid=CKuah5rjvJICFQGIPAodiDhsLg

Glad to know your opinions on commodity prices are based upon such objective, non-interest driven "facts" as those provided by people that stand to profit off $187/bbl oil...

 

[siucavflight]

You are right, there is a big oil bubble, the price of oil will be down to 60 dollars a barrel in no time.

 

[Smarta$$]

So you all seem to know for a sure that the dollar will get stronger. Can you give me those dates so I know when to invest in the dollar. Also, can you give me the date of the bubble burst so I can bet against oil?

You don't know anything.

 

[Morning Wood]

Analysts are stating the oil market is being driven by speculators. Hopefully that will change soon. We've seen a slight decline, hopefully we'll see a bigger one.

Trojan

True story. People out to make a quick buck like all the people who got into the house flipping frenzy. Look at where that kind of loan insanity got us.

MW
ASU Sun Devil

 

[BoilerUP]

You are right, there is a big oil bubble, the price of oil will be down to 60 dollars a barrel in no time.

Never said that; we may see $80/bbl but thats where I see the absolute bottom being.

Oil will, inevitably, go upward of $200/bbl.

That said, I do not think it will go that high in the near future without a major terrorist attack on our nation's oil and/or financial infrastructure, or full-fledged shooting war with Iran.

Oil is high not because of a lack of immediate supply, its because of speculators betting on geopolitical unrest and the weakness of the currency that oil is traded in. Of course demand in China and India and Russia has driven up price, but supply-and-demand fundamentals DO NOT support anywhere near the current price per barrel.

And Smarta$$ I can't give you dates but all you have to do is look at, oh, the last 50 years or so of history. Things will never be the way they were but this, as everything else has, will pass.

I may not know anything, and I only have a degree in aviation, but I can watch Bloomberg and read the WSJ and figure out what is really going on. If this schumck can do that, anybody can...

 

[jetflyer]

I think oil prices may be going higher.......... Just a hunch.