Volatile fuel prices a concern for LCCs around the world

LCC generally gained on Thursday (29-Jul-09), despite oil prices surging yesterday, regaining Wednesday's fall. New York oil prices gained USD3.66 to settle at USD67.01/barrel, while in London, oil prices for September delivery gained USD3.68 to settle at USD70.21. The increases follow a period of turbulence in the oil markets, which has seen oil prices slump from above USD147/barrel 12 months ago to as low as USD32 in Dec-2008. This turbulence suggests that there remains considerable speculative interest in oil prices, which, as happened 12 months ago, could quickly push prices to high levels with little explanation.