Shell predicts two decades of rising energy prices
http://news.independent.co.uk/business/ ... ory=644809
and....
‘Fear premium' driving oil prices
http://www.theglobeandmail.com/servlet/ ... /Business/
Of the two, the latter is far more interesting and immediately relevant.
Two articles about oil prices
Moderator: Latest news team
And what do you think will be the immediate impact on the aviation sector. Will the fuel surcharge go up.I'm surely not an av fuel specialist.
I do know that there's a lot more to
refined fuel pricing than crude cost
so you cannot do a simple ratcheting
up effect when crude goes up.
By the look of Boeing's forecasts, fuel
costs, as these affect ticket prices, don't
matter much. The demand for an airline
ticket appears to be price inelastic.
What I found shocking about the Canadian
study is just how much of the price of a
barrell of fuel is tied up in that 'fear factor'.
$22!!
In the US, Large SUV sales have plummeted
by about 25% but this is a different class of
traveller than is the airline traveller.
I do know that there's a lot more to
refined fuel pricing than crude cost
so you cannot do a simple ratcheting
up effect when crude goes up.
By the look of Boeing's forecasts, fuel
costs, as these affect ticket prices, don't
matter much. The demand for an airline
ticket appears to be price inelastic.
What I found shocking about the Canadian
study is just how much of the price of a
barrell of fuel is tied up in that 'fear factor'.
$22!!
In the US, Large SUV sales have plummeted
by about 25% but this is a different class of
traveller than is the airline traveller.