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Fuel prices jump again

13-Nov-2009

IATA has reported that airline passenger traffic is now recovering from the deep hole witnessed in late 2008 and earlier in the year, but the marginal improvement back to growth is being overshadowed by the surging oil price.

Since the end of Sep-2009 oil prices have risen USD10 per barrel, levelling out at just under USD80 in the past week. IATA has warned that oil prices in the USD70-80 per barrel range will squeeze airline cash flows, which have already been put under pressure by still-depressed yields.

Oil gets back above USD80 per barrel

Oil prices spent much of last week hovering just below USD80 per barrel, after crossing this threshold at the beginning of the week. For the week to 27-Oct-2009, the underlying crude oil price dipped 1.4%, the first weekly decline after a month of increases.

WTI spot price: Mar-2009 to Nov-2009

Jet fuel prices also dropped marginally, with prices easing on most markets. New York Harbour and US Gulf Cost prices fell 1.7% and 0.9% respectively, while Los Angeles prices fell 2.5%. Amsterdam-Rotterdam-Antwerp exchange prices declined 2.3% while Singapore prices rose 0.8%, and are now nearly 10% higher than this time last year.

Crude oil prices are better than 30% above this time last year; jet fuel prices are now either equal to or just above level they were at 12 months ago.

Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: 05-May-09 to 11-Nov-09

Major oil market movements, USD cents per gallon

 

04-Nov-09

05-Nov-09

06-Nov-09

09-Nov-09

10-Nov-09

11-Nov-09

one week Change

12 month Change

New York Harbor

207.03

204.78

198.44

203.09

203.13

203.45

-1.7%

-0.4%

U.S. Gulf Coast

202.03

199.78

194.69

199.59

199.88

200.2

-0.9%

2.9%

Los Angeles

212.78

209.53

201.44

206.34

205.88

207.45

-2.5%

6.2%

Amsterdam-Rotterdam-Antwerp

207.88

206.37

200.78

205.16

203.8

203.12

-2.3%

0.5%

Singapore

203.33

203.93

204.76

201.9

202.62

204.88

0.8%

9.1%

WTI Spot

80.3

79.64

77.4

79.44

79.01

79.16

-1.4%

33.3%


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