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The spectre of USD100 oil (again)

16-Apr-2010

Oil prices are again flirting with the USD90 per barrel mark, prompting OPEC to raise the spectre of triple-digit oil prices. The cartel has announced it could step up production in prices were to breach USD100 per barrel, in order to cool the market. Kuwait’s Oil Minister stated that the grouping would meet on output levels if oil prices reached USD100 per barrel, although any decision will still depend on the "market situation and supply and demand," according to a report in the Associated Press.

OPEC has already announced that it is satisfied with oil trading in the USD70 to USD80 per barrel bracket and has no concerns with the current price range of around USD85 per barrel. But oil prices touched USD87 per barrel this week in trading, although rising US inventories and uncertain economic indicators have pared gains.

IATA sees the increasing price of oil as adding momentum to airline consolidation. Director General & CEO, Giovanni Bisignani, stated that mergers and consolidation are necessary to enhance efficiency for airlines, which suffered badly in 2008 when oil prices hit record highs.

Oil prices cool moderately

Oil prices ended the week to 13-Apr-2010 at USD83.80 per barrel, down almost USD3 per barrel on the previous week. Prices are still around USD30 per barrel above where they were this time last year.

WTI spot price: Feb-2009 to Feb-2010

Jet fuel prices (cents per gallon) all dropped, after a four week increase in prices. New York Harbour prices dipped most, falling 3.5%, while Los Angeles and Amsterdam both fell 2.6%. US Gulf Cost prices were down 2.5% and Singapore prices dipped 1.0%.

Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: Aug-2009 to Apr-2010

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-Mar-2010 to 06-Apr-2010

 

06-Apr-10

07-Apr-10

08-Apr-10

09-Apr-10

12-Apr-10

13-Apr-10

one week Change

12 month Change

New York Harbor

232.93

229.99

228.64

228.35

225.77

224.8

-3.5%

56.3%

U.S. Gulf Coast

227.93

225.24

224.89

224.35

223.27

222.3

-2.5%

59.0%

Los Angeles

232.93

231.49

229.39

229.1

227.77

226.8

-2.6%

57.2%

Amsterdam-Rotterdam-Antwerp

232.35

229.18

228.8

227.67

228.35

226.39

-2.6%

57.0%

Singapore

227.02

227.74

225.24

227.62

227.74

224.64

-1.0%

56.3%

WTI Spot*

86.54

85.64

85.17

84.60

84.07

83.80

-3.2%

66.9%


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