fuel prices after Saudi fuel refinery attack ?

[ozfflyer]

The Saudi oil refinery attack could be a Pearl Harbour moment

The way multiple relatively inexpensive drone devices were apparently able to pierce Saudi defences in a way that a traditional air force could not has the potential to change modern warfare.

www.brisbanetimes.com.au

Are we about to see AUD$2 or AUD$2.50 a litre for unleaded fuel at servos ?

What effect will it have on airlines ?

Could those airlines that don't have significant fuel hedging be in real trouble ?

Short term ?

How can Saudi refinery recover ? Can others increase production ?

Australia not worried about oil shortages

Surely prices can only go one way, that's up & fast ?


In the 1st Bris times story above, it states ..........

>>>

"Quad copters
Price and others said they doubted that the small quad copters that have proliferated and can be bought online or in electronics stores were used in the Saudi attacks. Those battery-powered devices have limited range and can't carry more than a pound or so of explosives."

>>>

But only a week ago, we saw a fisherman in Australia, being lifted by a home made quad copters. No idea how much he weighed by probably 80 or 90 kgs, that's 176 to 200 lbs, not 1 pound.


Here we go, the 80/90kg "bomb". Hope he doesn't catch 2 many fish, as he might end up in the drink. Watch the you tube video below

 

[33kft]

The Saudis have said that they will at least partially service the 50% shortfall (which translates to a 5% shortfall globally) from their oil stockpiles, and prices are already on the move. I suspect the price movements are anticipatory but it seems to me the reserves are there for exactly this purpose and assuming they outlast the time needed to repair the damage, how much of this is for profit gouging?

 

[ozfflyer]

The Saudis have said that they will at least partially service the 50% shortfall (which translates to a 5% shortfall globally) from their oil stockpiles, and prices are already on the move. I suspect the price movements are anticipatory but it seems to me the reserves are there for exactly this purpose and assuming they outlast the time needed to repair the damage, how much of this is for profit gouging?

sure, but tiny production cuts lead to spikes in pricing. Yes the speculators will be out for a quick buck.

 

[33kft]

For spot prices yes. It's likely the hedged airlines aren't too concerned yet.

I'd be more worried about bowser prices personally, but then again I don't have to worry about that myself.

 

[ozfflyer]

For spot prices yes. It's likely the hedged airlines aren't too concerned yet.

I'd be more worried about bowser prices personally, but then again I don't have to worry about that myself.

Do airlines ever hedge 100% of their fuel requirements ?

 

[33kft]

Do airlines ever hedge 100% of their fuel requirements ?

Unlikely, but with a combination of hedging and reserves I suspect they can smooth out the impacts a bit better than motorists can, especially if it is short lived. If it is long lived, we're all going to feel it in a number of ways unfortunately.

 

[Melburnian1]

This article probably has little relevance to our two major airlines but it summaries what some allegedly perceive elsewhere:

Oil price surge a worry for airlines - Airline Ratings

Shares in airlines and cruise lines have been hit by fears of an oil price spike after an attack on a Saudi oil refinery.

www.airlineratings.com