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Jet Fuel – To Hedge or Not to Hedge? (Part 2)
Thu, Jul 3 2008, 15:48 GMT
by The Trader's Journal Collaborators
This article is taken from the Trader's Journal magazine (May 2008 issue)
The Author, Ron Schelling, is an independent trader in The Netherlands with over 30 years in aviation, of which 20 years experience trading Forex, futures arbitrage trading and jet fuel hedging analyses. He can be reached on www.2hedge.com
- Ron Schelling continues his coverage of the problems global airlines are experiencing with rapidly increasing fuel prices
In the February issue of The Trader’s Journal, I discussed the airline’s upcoming problem with high crude oil prices. Now that prices have moved even higher, it is becoming a real problem for them now.
When that article was written in early February 2008, the world average jet fuel price was around 2.75 USD per gallon. This price level represented a steep climb from the average price of January 2007 when jet fuel was at 1.70 USD per gallon.
Now, it is June 2008. The average price of jet fuel is around 4.00 USD per gallon. Jet fuel prices have more than doubled since January 2007!
_______________Other related article:
Jet Fuel – To Hedge or Not to Hedge? (Part 1)Published on Thu, Jul 3 2008, 16:01 GMT
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