Over a barrel

The price of jet fuel traded in Singapore is up 80% from 12 months ago – since January 2005, the price has swung daily by as much as +7% to –5.8%. Jill Wong asks Asian airlines how they are managing this volatility in their staple commodity


The price of crude oil is making daily headlines; but for airlines, high prices are just the beginning of the problem. The difference between the price of crude oil and the price of jet fuel – the crack spread – is widening fast, against an already inflated oil price. During the first half of 2004, the spread averaged US$7 per barrel and rarely exceeded $10 per barrel. Since the third quarter of 2004, however, crack spreads widened sharply and are now at $17 per barrel, because of demand and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here