Question

what is the impact of crude oil prices on airlines ?

what is the impact of crude oil prices on airlines ?
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Oil price fluctuations's main source is OPEC which control over40% of global oil supplies.OPEC influences the price of oil by setting production levels to meet the global demand for crude oil.it can influence the demand by increasing or decreasing the production.crude oil is commodity and it is subjected to the economic laws of supply and demand.when demand exceed supply the prices will go up and when supply exceed demand the prices go down.Besides OPEC , politics, interest rates and natural disasters can also influence on the prices of oil.as we know if market is experiencing consistent hikes then fuel prices is increases and due to this ticket prices will also increases and vice versa.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If U.S. Congress imposed an import fee on crude oil, what would happen to the following...
If U.S. Congress imposed an import fee on crude oil, what would happen to the following and explain? a) Would the world demand curve for crude oil: Shift to the right, shift to the left, or stay the same b) World supply curve for crude oil: Shift to the right, shift to the left, or stay the same c) U.S. demand curve for crude oil: Shift to the right, shift to the left, or stay the same d) U.S. supply...
The manager of Vueling is worried about a possible increase in crude oil price volatility. Under...
The manager of Vueling is worried about a possible increase in crude oil price volatility. Under this scenario the uncertainty regarding operational costs of the firm would rise. What strategy with options must Vueling Airlines follow to be hedged against this possibility? Select one: a. Buy put options on the oil crude b. Sell a future contract on the oil crude c. Buy a straddle written on crude oil. d. Sell a straddle written on crude oil
4.The Bartlesville Oil Refinery converts crude oil to gasoline. It takes one barrel of crude oil...
4.The Bartlesville Oil Refinery converts crude oil to gasoline. It takes one barrel of crude oil to produce one barrel of gasoline. Total cost of producing q barrels of gasoline at the refinery isTC = ½ q2+ wq where w is the price of a barrel of crude oil. Marginal cost is therefore dTC/dq = q+w a.Suppose the refinery can purchase 50 barrels of oil for $5 per barrel, but must pay $15 per barrel for any barrels it buys...
The Oklahoma Crude Oil Refinery buys crude oil from the Red Rock oil field located in...
The Oklahoma Crude Oil Refinery buys crude oil from the Red Rock oil field located in eastern New Mexico, western Texas, and western Oklahoma. The refinery has been guaranteed through long-term supply contracts that its needs for crude will be supplied from this field at $18.90 per barrel as long as the refinery accepts 5,000 barrels per day during shipping periods. The refinery uses crude oil at a rate of 1,500 barrels per day and plans to purchase 450,000 barrels...
Will a decrease in oil prices have an IMMEDIATE IMPACT on the U.S core inflation rate?...
Will a decrease in oil prices have an IMMEDIATE IMPACT on the U.S core inflation rate? Why or why not?
Will a decrease in oil prices have an immediate impact on the U.S. core inflation rate?...
Will a decrease in oil prices have an immediate impact on the U.S. core inflation rate? Why or why not?
An oil refinery in singapore receives crude oil from Arabia and refines it into gasoline that...
An oil refinery in singapore receives crude oil from Arabia and refines it into gasoline that is sent to Malaysia (by truck capacity 15tons/wagon ).1 ton of crude oil is transformed into 0.75 tons of gasoline.Transport costs are $1000/truck , $25000/ship and $5000/wagon.Refining 3 batches of crude oil each of 50 tons takes 1 week.Production/week can either be 50 tons,100 tons or 150 tons.When the refinery places an order to Saudi Arabia , multiples of 1000tons of crude oil arrives...
Suppose that the demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. What...
Suppose that the demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. What is the tax incidence on buyers if government imposes a tax on extraction of oil. The tax is collected from suppliers.
What would happen to the equilibrium price and quantity of crude oil if Saudi Arabia increased...
What would happen to the equilibrium price and quantity of crude oil if Saudi Arabia increased its production of oil? describe and show with supply or demand diagram.
What impact did the soaring oil prices of 2007 and the first half of 2008 have...
What impact did the soaring oil prices of 2007 and the first half of 2008 have on the economy? a. They increased SRAS, causing real output and employment to increase. b. They reduced SRAS, causing real output and employment to increase. c. They increased SRAS, causing real output and employment to decline. d. They reduced SRAS, causing real output and employment to decline.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT