 |
Louisiana Light • 2 days | 86.49 | -0.63 | -0.72% | ||
|
Bonny Light • 21 hours | 88.40 | -0.92 | -1.03% | ||
|
Opec Basket • 2 days | 88.45 | +1.94 | +2.24% | ||
|
Mars US • 174 days | 77.26 | -1.51 | -1.92% | ||
|
Gasoline • 24 mins | 2.767 | +0.009 | +0.33% |
|
Bonny Light • 21 hours | 88.40 | -0.92 | -1.03% | ||
|
Girassol • 21 hours | 89.03 | -0.87 | -0.97% | ||
|
Opec Basket • 2 days | 88.45 | +1.94 | +2.24% |
|
Peace Sour • 20 hours | 76.01 | -0.55 | -0.72% | ||
|
Light Sour Blend • 20 hours | 79.06 | -0.55 | -0.69% | ||
|
Syncrude Sweet Premium • 20 hours | 86.01 | -0.55 | -0.64% | ||
|
Central Alberta • 20 hours | 76.41 | -0.55 | -0.71% |
|
Eagle Ford • 2 days | 79.29 | -0.04 | -0.05% | ||
|
Oklahoma Sweet • 2 days | 79.25 | -0.50 | -0.63% | ||
|
Kansas Common • 21 hours | 73.75 | +0.75 | +1.03% | ||
|
Buena Vista • 2 days | 87.23 | -0.55 | -0.63% |
Breaking News:
Could the Conflict Between Iran and Israel Turn Nuclear?
Iran's potential retaliatory measures following…
Anglo-American's Share Price Soars on BHP Buyout Talks
BHP's proposed acquisition of Anglo…
Airlines Hedge Cheap Oil, Protecting Them Through 2019
Airlines are locking in cheap oil for the next few years, taking advantage of what could end up being a temporary period of low prices.
Reuters reports that some of the largest airlines are stepping up their hedging programs in a big way for the first time since prices started to collapse in mid-2014. Last week, several airlines secured hedges for oil at low prices for 2017, 2018, and even 2019, although the exact companies were not disclosed. Still, Reuters says it was the most active hedging activity from the airline industry in more than a year.
Related: $120 Oil As Soon As 2018?
That comes after several airline companies – including Southwest and United Continental Holdings – hedged oil prices last summer when oil prices rose to $60 per barrel, an unfortunate bit of timing given that prices proceeded to fall in subsequent months. However, with crude oil below $40 today, most airlines see very little room on the downside. That has them scrambling to secure several years’ worth of oil supplies at cheap prices.
If crude oil bounces off of today’s lows, and rises to $50, $60, or $70 per barrel, for example, many of these airlines will be protected.
By Charles Kennedy of Oilprice.com
More Top Reads From Oilprice.com:
- Oil Sanctions Risk Pushing An Unstable North Korea Over The Edge
- How The Ocean Can Help Predict Electricity Prices
- Oil Speculators Run Out Of Reasons To Bet On Rising Prices
Related posts
Open57.81
Trading Vol.6.96M
Previous Vol.241.7B
So how do you reconcile this against your article yesterday saying exactly the opposite and the world over supply will infact produce further falls rather than rises ?