doc

Crude-oil prices, which only a year ago were below $12 a barrel, just skyrocketed to more than $30., the highest price since the Gulf War in 1991. Prices could easily go higher - and likely will!
<A HREF="http://www.nytimes.com/library/financial/021500oil-prices.html" TARGET=_blank> http://www.nytimes.com/library/financial/021500oil-prices.html[/url]
http://public.wsj.com/news/personalEmail/SB950548158991777909-SB950571689355111738.html
http://www.nytimes.com/aponline/f/AP-Gas-Prices.html



[This message has been edited by doc (edited 02-16-2000).]

jeffreyt

I'm curious too.. I don't know how the airlines can hold on financially if they don't do it. The profits over the last couple years have been due to cost cutting and cheap fuel.

doc

While many expect prices now to continue to back off somewhat, partly due to warmer weather and partly due to an expected increased supply, it is interesting to note that the present big supporter of higher OPEC oil prices via lowered supply, despite incessant pleas from US representatives is.... KUWAIT!

Kind of their way of saying "Thank you" for our going to war to liberate their country and restore them to power! One favor deserves another - or maybe not I guess!

SMessier

This is getting well beyond the purpose of this board I must admit, but the operation in Kuwait was not done out of sheer altruism and generosity towards the Kuwaiti government. On that score in any case, Mexico is also an ungrateful recipient of US assistance...

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doc

Of course, I understand! yet they sure appeared grateful at the time!

Yet, despite this:

Sheikh Saud of Saudi Arabia has repeatedly advocated a hawkish extension of OPEC output curbs beyond their expiry at the end of March to shore up prices riding near nine-year highs.
http://www.nytimes.com/reuters/busin...nergy-usa.html

UPDATE: Finally

DUBAI, United Arab Emirates (AP) Gulf oil ministers have agreed to increase production to stabilize international markets, where the price of oil nears an all-time high, a senior UAE oil official said today.``All the ministers were in agreement during the meeting'' that ended Wednesday in Saudi Arabia, the official said on condition of anonymity. ``Figures were discussed and more discussions will be held before a specific figure is agreed upon.''
http://www.nytimes.com/aponline/i/AP-Gulf-Oil.html

Thankfully!

SMessier

Doc:

On some level, I do agree that pressing for even more increases in the price of oil is pushing the envelope, and with any luck is likely to be counter productive anyway. I just don't necessarily think that they owe "us" (as I am Canadian, not American) special favors.

Sorry - just read the update now, yes, finally! I think they figured out that they were approaching the fine line between annoyance and exasperation... Let's see how low fuel prices have to go before the fuel surcharge is rescinded... With Delta, the prime fuel cost hedger also on the surcharge bandwagon, I would guess we'll wait for a while. Perhaps the airlines will now tell us they hedged at $30/barrel...

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doc

SINGAPORE (Reuters) Crude oil prices in Asia Thursday edged lower but stayed close to $30 per barrel as producer supply cuts continued to eat into stocks. At 0800 GMT, New York Mercantile Exchange (NYMEX) crude futures were last traded at $29.70 per barrel for April, down 27 cents from New York.

Traders said the small decline in Asia was the result of profit-taking as players took advantage of the high prices built up on Thursday in New York. But the market remained fundamentally firm owing to the low stocks and producer supply restraint, they said.

NY prices surged above $30 on Thursday after the latest stock data from the US Department of Energy showed the nation's crude inventories were the lowest in two decades.
The April contract rose to $30.15, shy of the post-Gulf War peak of $30.45 traded last week, before ending the day $29.97, up 58 cents.

"We believe our stocks are extremely...dangerously low,
" US Energy Secretary Bill Richardson said in Kuwait Wednesday after talks with Kuwaiti Oil Minister Sheikh Saud Nasser al-Sabah. "Oil prices are too high," he said.

Richardson, who is heading next to Saudi Arabia, is visiting Gulf Arab producers to persuade OPEC to increase oil supply.

Oil prices have TRIPLED from a year ago as a result of the export CUTS by OPEC and some other producers, which aimed to hold back more than 5 million barrels per day (bpd) in the year to the end of March.

Kuwait, in a joint statement with Richardson after the talks, said it was committed to maintaining price stability and that it would analyze output levels. Gulf sources said OPEC will raise production in April, but that the increase would be gradual.

A meeting of OPEC oil ministers scheduled for March 27 will decide production quotas for the cartel, which controls 40 percent of world supply.

doc

Oil prices hit new highs before ending narrowly firmer on Friday ahead of crucial supply talks between the top energy decision-makers from Saudi Arabia and the US.

US crude for April delivery on the NY Mercantile Exchange shot up 86 cents to $30.83 a barrel as deep supply curbs kept US stocks of spare oil near their lowest for the last two decades.
http://www.nytimes.com/reuters/busin...rkets-oil.html

UPDATE: http://www.nytimes.com/reuters/busin...rgy-richa.html

Leading oil producers Saudi Arabia, Venezuela and Mexico are set to propose that OPEC raise oil output by 1.2 million barrels a day from April, OPEC delegates said.
http://www.nytimes.com/reuters/busin...-oil-opec.html

[This message has been edited by doc (edited 03-01-2000).]

SMessier

Hope at last?

LONDON (Reuters) - The leading oil producing nations of Saudi Arabia, Venezuela and Mexico are set to propose that OPEC raise oil output by 1.2 million barrels a day in April in order to ease sky-high crude prices, OPEC delegates said.
http://cnnfn.com/2000/03/01/news/wires/opec_wg/

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MisterNice

No hope yet.....spot prices up over $1 at noon today.

doc

Costs for fuel in 2000 may likely rise 40% over '99 levels, or about $4.4 billion- nearly as much as the industry made in profits last year.
http://www.nytimes.com/reuters/busin...lines-fue.html

Tango

I have said this before and will say it again---the price of oil has nothing to do with how airlines price their fares. If this were the case why did they raise fares several times last year when oil hit record low prices???? Airlines will price seats for as much as the market will bare period. The attempt to tack on "fuel surchages" is an illegal marketing ploy so they do not look like the bad guys.

doc

In any case finally some relief is in sight!

Oil prices slid further today with expectations OPEC next week will heed consumer calls for increased supply and further open taps with increased output.

Benchmark Brent crude is quoted off at another 0.62 cents lower, now at $25.94 per barrel, that's $5.91 or 18 percent lower than its 8-yr peak that we'd hit which was $31.95 per barrel 3/7/00.
http://www.nytimes.com/reuters/busin...rkets-oil.html

UPDATE: http://www.nytimes.com/aponline/f/AP-OPEC-Meeting.html

Despite weeks of back-room negotiations intended to produce a smooth and quick consensus, OPEC members Monday could not agree on how much to increase oil production, with Iran in particular insisting on a smaller boost than Saudi Arabia wants.
http://public.wsj.com/news/personalE...337532054.html

[This message has been edited by doc (edited 03-28-2000).]

doc

OPEC oil ministers were gathering Sunday to decide details of a new pact expected to raise their crude exports by about 5-6 percent:
<A HREF="http://www.nytimes.com/reuters/business/business-energy-opec.html" TARGET=_blank> http://www.nytimes.com/reuters/business/business-energy-opec.html[/url]

http://public.wsj.com/news/personalE...496680187.html


http://www.nytimes.com/reuters/busin...cks-leada.html

http://www.nytimes.com/library/world...opec-meet.html

[This message has been edited by doc (edited 03-27-2000).]

doc

OPEC oil producers were set to approve a deal today, Tuesday to raise output limits and satisfy Us demands for lower prices
http://www.nytimes.com/reuters/busin...ergy-opec.html

UPDATE:
Iran's near immediate reversal added to drama surrounding the meeting of OPEC ministers, that ended here early today when 9 of the 11 members of the Organization of Petroleum Exporting Countries decided to raise production quotas by 1.45 million barrels a day.
http://www.nytimes.com/library/finan...opec-iran.html

And:

The Security Council unanimously approved today a doubling of the amount of money Iraq may spend on equipment and spare parts for its dilapidated oil industry, from $600 million to $1.2 billion over a 12-month period ending in June. They expressed its intention "to consider favorably," a future renewal of that increase.

The council voted, WITHOUT ANY SPEECHES, on a resolution drafted by the US and agreed on by all 15 council members.
http://www.nytimes.com/reuters/inter...l-iraq-oi.html

[This message has been edited by doc (edited 03-31-2000).]