Fuel costs

[SteveH2508]

Absolutely un-American if you ask me.

Does your business purchase fuel options for your vehicles or do you also buy on the spot market?

 

1. I'm a Brit! (yes I know we are capitalists as well;))

2. My 'business' is a College so fuel is not one of our main things - utilities and a couple of mini-buses is about it!

[Corfe Mixture]

The major cruise operators stopped trying to exercise fuel options about 10 years ago. The market has becoime so volatile that every time they tried the options, they got burned.

Almost everyone is buying now on the spot market.

 

I believe that the above statement, whilst it may be technically correct, is actually misleading.

 

Yes, Princess buy bunker oil on the spot market, so strictly speaking the statement is correct

 

HOWEVER

 

Princess make a clear statement in their 3rd quarter results that they use derivatives which whilst they

'may not show a high degree of correlation with changes in our underlying marine fuel prices.'

they nevertheless

'believe that these derivatives will act as economic hedges'

Edited December 10, 2014 by Corfe Mixture