The Cost of Aviation Fuel, Part 2

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Recently, I was reading an article posted to Eye on the Economy on msnbc.com. The article was titled “As oil prices drop, Fed should get credit.” After reading the article, I decided to write Part 2 to a previous blog post titled The Cost of Aviation Fuel.

In the first post, I talked about continued increases in the cost of aviation fuel and what FBOs can do to mitigate high retail prices. We looked at a number of the reasons for the increasing cost of fuel:

  • The Fed policy of a weak dollar — a weak dollar requires more dollars to buy a barrel of crude oil.
  • The continued unrest in the Middle East.
  • Uncertainty with the federal deficit.
  • Speculators betting on the increased price of fuel.
  • Lack of offshore drilling in the United States.

Since then, here is what is happening in the world markets:

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