Crude Oil goes up $5 in twenty minutes - Airlines Pissed - GoFuckYourself.com

kenny · 07-10-2008, 04:28 PM

Airlines are pissed and sending out emails.

An open letter to all airline customers

Dear Mr. Kenny M xxxxxx,

Last week, crude oil hit an all-time high of $146, and the skyrocketing cost of fuel is impacting our customers, our employees, the communities we serve, and the economy as a whole. United, and the majority of other major U.S. airlines, are asking our most loyal customers to join us in pushing for legislation to add more transparency and disclosure in the oil markets. Please see the attached open letter from the leaders of the U.S. airline industry.

An Open letter to All Airline Customers:

Our country is facing a possible sharp economic downturn because of skyrocketing oil and fuel prices, but by pulling together, we can all do something to help now.

For airlines, ultra-expensive fuel means thousands of lost jobs and severe reductions in air service to both large and small communities. To the broader economy, oil prices mean slower activity and widespread economic pain. This pain can be alleviated, and that is why we are taking the extraordinary step of writing this joint letter to our customers. Since high oil prices are partly a response to normal market forces, the nation needs to focus on increased energy supplies and conservation. However, there is another side to this story because normal market forces are being dangerously amplified by poorly regulated market speculation.

Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.

Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper.

The nation needs to pull together to reform the oil markets and solve this growing problem.

We need your help. Get more information and contact Congress by visiting www.StopOilSpeculationNow.com.

GrouchyAdmin · 07-10-2008, 04:30 PM

Not that the airlines haven't prepaid for at least a bajillion years to ensure their supply.

..but please, waste more database.

SifuE · 07-10-2008, 04:32 PM

bout fucking time!

GrouchyAdmin · 07-10-2008, 04:33 PM

Quote:

Originally Posted by SifuE

JEW$!!!!!

I think you should go get a drink of water.

tony286 · 07-10-2008, 04:34 PM

this might put a fire under the governments ass

teomaxxx · 07-10-2008, 04:38 PM

Quote:

Originally Posted by kenny

Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.

www.StopOilSpeculationNow.com.

GoldMan Sachs says otherwives:
"Goldman Sachs Says Demand, Not Speculators, Cause of Oil Rally"

wait, they made money most money in 2Q as follows :
* betting on oil
* underwriting fees for under-capitalized banks
* reduced taxes

do you think your goverment will go against Goldman Sachs?

of course, there are supply problems, but there is a huge speculator interest too.
Currently USD trades as sort of anti-oil currency due FED and its monetary policy.

As I already posted here:

Quote:

Originally Posted by teomaxxx

Now everyone and his gradmamma are speculating in oil on futher dollar debasment.This is what you got, when you have FED trying by low interest rate policy, to bailout wallstreet banks, without any respect to average Joe, while some of those yet to bankrupted banks are trying now to get out of their own mess by playing a commodity boom too..
Nobody is benefiting from current low interest rates except banks.

The Central Eurobank head told it few weeks ago: "to cut interest rates at this point would be the same as taxing the people to bail out the banks. Cost of extra inflation would be the ultimate sign of moral hazard to save banks."

"Crude is now moving almost reflexively as a sort of "anti-dollar", a currency on steroids with eight times leverage. No matter that the global economy is slowing hard. Bad is good for oil in the topsy-turvy world of commodity funds."
from:
http://www.telegraph.co.uk/money/mai.../ccview109.xml

Of course there supply problems too, but speculation factor is big too as we can see on $5-10 moves in one day, in particular those kind of moves connected to USD/EUR exchange rates...

In addition to supply problems, now you guys in the US got a pay for monetary policy of your institutions and we too as oil simply moves also as currency hedge with huge leverage.

dropped9 · 07-10-2008, 04:40 PM

Quote:

Originally Posted by SifuE

bout fucking time!

NAZI!!!!!!!!!!!!

dropped9 · 07-10-2008, 04:44 PM

Not for nothing... It is the fucking speculators fucking us... I overheard a bunch of spoiled rich kids talking about this shit at a party I was at... They were boasting about how much money they are banking with daddys money in the oil markets.

It is them that is fucking us.

mynameisjim · 07-10-2008, 04:47 PM

Last week didn't it swing over $10 then today it's up over $5 a barrel. Something as well known and as well studied as oil shouldn't be moving that much.

Speculators are a huge part of this. Just like the other guy said about the number of people buying oil with no intention of delivery. The same thing is happening with electricity and natural gas which is why my heating bill has more than doubled. They deregulated it and now investment banks are in the natural gas business just buying up gas and re-selling just to turn a profit. Same with electricity.

The energy markets are really out of control.

kenny · 07-10-2008, 04:51 PM

Here are the the signers of the email. Did anybody else receive this email?

Robert Fornaro
Chairman,
President and CEO
AirTran Airways

Bill Ayer
Chairman,
President and CEO
Alaska Airlines, Inc

Gerard J. Arpey
Chairman,
President and CEO
American Airlines, Inc

Lawrence W. Kellner
Chairman and CEO
Continental Airlines, Inc.

Richard Anderson
CEO
Delta Air Lines, Inc

Mark B. Dunkerley
President and CEO
Hawaiian Airlines, Inc

Dave Barger
CEO
JetBlue Airways
Corporation

Timothy E. Hoeksema
Chairman,
President and CEO
Midwest Airlines

Douglas M. Steenland
President and CEO
Northwest Airlines, Inc.

Gary Kelly
Chairman and CEO
Southwest Airlines Co.

Glenn F. Tilton
Chairman,
President and CEO
United Airlines, Inc

Douglas Parker
Chairman and CEO
US Airways Group, Inc

Sly · 07-10-2008, 05:03 PM

I have flown on five of those airlines within the past 18 months and I did not receive this e-mail. When did you get it?

kenny · 07-10-2008, 05:06 PM

Quote:

Originally Posted by Sly

I have flown on five of those airlines within the past 18 months and I did not receive this e-mail. When did you get it?

They sent it to me today.

There really is nothing I can do to help them. My representative is already one of the congressmen attempting to curb speculation.

kenny · 07-10-2008, 05:11 PM

I have a bunch of frequent flyer miles with United.

Maybe thats why I got it.

Sly · 07-10-2008, 05:17 PM

Quote:

Originally Posted by kenny

They sent it to me today.

There really is nothing I can do to help them. My representative is already one of the congressmen attempting to curb speculation.

You also have a senator that represents you. And a governor.

mynameisjim · 07-10-2008, 05:24 PM

Can't believe such a thing got no news coverage on any of the business sites. Could it be a fake?

kenny · 07-10-2008, 05:29 PM

Quote:

Originally Posted by mynameisjim

Can't believe such a thing got no news coverage on any of the business sites. Could it be a fake?

It took me all of 2 minutes to find some.

http://news.google.com/news?sourceid...&sa=N&tab= wn

07-10-2008, 04:28 PM	#1
kenny Confirmed User Industry Role: Join Date: Mar 2002 Posts: 7,245	Crude Oil goes up $5 in twenty minutes - Airlines Pissed Airlines are pissed and sending out emails. An open letter to all airline customers Dear Mr. Kenny M xxxxxx, Last week, crude oil hit an all-time high of $146, and the skyrocketing cost of fuel is impacting our customers, our employees, the communities we serve, and the economy as a whole. United, and the majority of other major U.S. airlines, are asking our most loyal customers to join us in pushing for legislation to add more transparency and disclosure in the oil markets. Please see the attached open letter from the leaders of the U.S. airline industry. An Open letter to All Airline Customers: Our country is facing a possible sharp economic downturn because of skyrocketing oil and fuel prices, but by pulling together, we can all do something to help now. For airlines, ultra-expensive fuel means thousands of lost jobs and severe reductions in air service to both large and small communities. To the broader economy, oil prices mean slower activity and widespread economic pain. This pain can be alleviated, and that is why we are taking the extraordinary step of writing this joint letter to our customers. Since high oil prices are partly a response to normal market forces, the nation needs to focus on increased energy supplies and conservation. However, there is another side to this story because normal market forces are being dangerously amplified by poorly regulated market speculation. Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs. Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper. The nation needs to pull together to reform the oil markets and solve this growing problem. We need your help. Get more information and contact Congress by visiting www.StopOilSpeculationNow.com. __________________ 7

07-10-2008, 04:30 PM	#2
GrouchyAdmin Now choke yourself! Industry Role: Join Date: Apr 2006 Posts: 12,085	Not that the airlines haven't prepaid for at least a bajillion years to ensure their supply. ..but please, waste more database. __________________ AIM: GrouchyGfy

07-10-2008, 04:32 PM	#3
SifuE Confirmed User Join Date: Aug 2007 Location: Scottsdale Posts: 877	bout fucking time! __________________ I.C.Q 360-553-673

07-10-2008, 04:51 PM	#10
kenny Confirmed User Industry Role: Join Date: Mar 2002 Posts: 7,245	Here are the the signers of the email. Did anybody else receive this email? Robert Fornaro Chairman, President and CEO AirTran Airways Bill Ayer Chairman, President and CEO Alaska Airlines, Inc Gerard J. Arpey Chairman, President and CEO American Airlines, Inc Lawrence W. Kellner Chairman and CEO Continental Airlines, Inc. Richard Anderson CEO Delta Air Lines, Inc Mark B. Dunkerley President and CEO Hawaiian Airlines, Inc Dave Barger CEO JetBlue Airways Corporation Timothy E. Hoeksema Chairman, President and CEO Midwest Airlines Douglas M. Steenland President and CEO Northwest Airlines, Inc. Gary Kelly Chairman and CEO Southwest Airlines Co. Glenn F. Tilton Chairman, President and CEO United Airlines, Inc Douglas Parker Chairman and CEO US Airways Group, Inc __________________ 7

07-10-2008, 05:03 PM	#11
Sly Let's do some business! Industry Role: Join Date: Sep 2004 Location: Austin, TX Posts: 31,319	I have flown on five of those airlines within the past 18 months and I did not receive this e-mail. When did you get it? __________________ Vacares - Web Hosting, Domains, O365, Security & More - Paxum and BTC Accepted Windows VPS now available - 3 months free for GFY members - 3 slots available Great for TSS, Nifty Stats, remote work, virtual assistants, etc. Click here for more details.

07-10-2008, 04:34 PM	#5
tony286 lurker Industry Role: Join Date: Aug 2002 Location: atlanta Posts: 57,021	this might put a fire under the governments ass

07-10-2008, 04:44 PM	#8
dropped9 Registered User Industry Role: Join Date: Jan 2001 Location: Your moms box Posts: 26,727	Not for nothing... It is the fucking speculators fucking us... I overheard a bunch of spoiled rich kids talking about this shit at a party I was at... They were boasting about how much money they are banking with daddys money in the oil markets. It is them that is fucking us.

07-10-2008, 04:47 PM	#9
mynameisjim Confirmed User Join Date: Aug 2007 Posts: 2,985	Last week didn't it swing over $10 then today it's up over $5 a barrel. Something as well known and as well studied as oil shouldn't be moving that much. Speculators are a huge part of this. Just like the other guy said about the number of people buying oil with no intention of delivery. The same thing is happening with electricity and natural gas which is why my heating bill has more than doubled. They deregulated it and now investment banks are in the natural gas business just buying up gas and re-selling just to turn a profit. Same with electricity. The energy markets are really out of control.

07-10-2008, 05:11 PM	#13
kenny Confirmed User Industry Role: Join Date: Mar 2002 Posts: 7,245	I have a bunch of frequent flyer miles with United. Maybe thats why I got it. __________________ 7

07-10-2008, 05:24 PM	#15
mynameisjim Confirmed User Join Date: Aug 2007 Posts: 2,985	Can't believe such a thing got no news coverage on any of the business sites. Could it be a fake?