Grumpy
09-23-2008, 08:27 PM
Airlines say commodity speculators and lack of congressional action contributed to the big run-up in oil prices.
Oil jumped from $105 Sept. 19 to as much as $130 per barrel Monday before closing at $121 per barrel.
Part of that jump stemmed from the proposed $700 billion U.S. bailout of troubled banks and mortgage lenders and the subsequent weakening of the U.S. dollar, according to the Air Transport Association. The industry group said oil and commodity speculators also were responsible for Monday’s crude oil run-up.
ATA CEO James May said Monday that commodity speculators put more money into the oil markets after concluding the U.S. Senate was unlikely to act on restrictions for speculation in the stock and commodity markets.
ATA and airlines have been pushing for such measures.
Oakland International Airport has been hard hit by troubles in the airline industry. ATA, Aloha and Skybus went out of business this spring, and then bigger airlines, dragged down by record-high fuel costs, brought more bad news, as American Airlines Inc. and Continental Airlines Inc. said they would stop serving Oakland, to reduce capacity and focus on their most- profitable routes.
Phoenix Business Journal
Oil jumped from $105 Sept. 19 to as much as $130 per barrel Monday before closing at $121 per barrel.
Part of that jump stemmed from the proposed $700 billion U.S. bailout of troubled banks and mortgage lenders and the subsequent weakening of the U.S. dollar, according to the Air Transport Association. The industry group said oil and commodity speculators also were responsible for Monday’s crude oil run-up.
ATA CEO James May said Monday that commodity speculators put more money into the oil markets after concluding the U.S. Senate was unlikely to act on restrictions for speculation in the stock and commodity markets.
ATA and airlines have been pushing for such measures.
Oakland International Airport has been hard hit by troubles in the airline industry. ATA, Aloha and Skybus went out of business this spring, and then bigger airlines, dragged down by record-high fuel costs, brought more bad news, as American Airlines Inc. and Continental Airlines Inc. said they would stop serving Oakland, to reduce capacity and focus on their most- profitable routes.
Phoenix Business Journal