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Oil prices slump 17% in a week on ‘browning shoots’

10-Jul-2009

What a difference a week makes! Oil prices have slumped 17% on the back of rising US crude inventories and collapsing support for the so-called ‘green shoots’ theory of economic recovery. Speculators are apparently no longer seeing the vision of growth and oil’s slump is probably a better indicator of sentiment about the global economic outlook than equities markets.

Oil prices closed up slightly at USD60.60 overnight in New York, after tumbling for six successive days. Prices reached an eight-month high of USD73.38 per barrel in intra-day trade on 30-Jun-2009. The moderation in prices will be welcomed by the airline industry, particularly the LCC sector.

In the week ended 07-Jul-09, jet fuel spot prices tumbled 10.7% at New York Harbor, -10.9 at the US Gulf Coast, -8.3% at Los Angeles, -12.8% in Amsterdam and -5.4% in Singapore.

Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore vs Crude Spot price (WTI, USD per barrel): 29-Jun-09 to 07-Jul-09

 

29-Jun-09

30-Jun-09

01-Jul-09

02-Jul-09

06-Jul-09

07-Jul-09

one week
Change

12 month
Change

New York Harbor

185.2

183

181.05

174.42

168.86

165.45

-10.7%

-60.6%

U.S. Gulf Coast

182.85

178.75

178.05

171.42

166.86

162.95

-10.9%

-60.1%

Los Angeles

185.45

176.97

186.52

179.95

174.36

170

-8.3%

-58.1%

Amsterdam-Rotterdam-Antwerp

188.32

184.54

181.59

176

168.83

164.29

-12.8%

-61.6%

Singapore

180

186.67

182.86

175.36

166.79

170.24

-5.4%

-59.3%

WTI Spot

71.47

69.82

69.32

66.68

64.06

62.88

-12.0%

-55.5%

Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: 02-Dec-08 to 07-Jul-09


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