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Nick, unfortunately the producers of oil can do whatever they please with the price of oil. It is, after all, their product.
Chris
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Exactly my point. Speculation is hurting the oil price and those responsible for the practice are doing nobody any favours! The prices should be tied to real events and tangible happenings not some traders idea of what may or may not eventuate.
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Well essentially, if you are an oil producer or even a speculator for that matter), and with so much power to raise prices without anyone really being able to stop you, why would you give a stuff about anyone else who really feels the pinch? I mean, as long as you would be making a profit you really wouldn't care about anyone else.
On another note, using textbook economics, it will be interesting to see which airlines can survive (obviously those who are the most efficient who can remain competitive in the market). QF should be able to hold up fairly well and outlast most of the other competitors I imagine (its most likely got the best economies of scale of all Australian domestic airlines considering its size), however, following the shock collapse of Ansett, I guess anything can happen.
Just makes me wonder how organisations such as the RFDS are coping with the rising price of fuel, as most of their funding comes from donations. Combine the rising price of fuel, less donations as a result of tighter household budgets, and the acute shortage of doctors throughout Australia, they must be feeling some pressure.