Boeing Expects Lower Oil Prices
This would be a relief.
Boeing expects oil bubble to burst in global slowdown(The Dominion Post) Aircraft maker Boeing expects the price of oil to fall back to a long-term average of between US$70 and US$80 a barrel.
Boeing marketing director Drew Magill said airlines had reduced capacity, with the United States on the brink of a recession and the need to pass on the high cost of oil to passengers.
"But that will be a short-term impact," Mr Magill said.
As the US and the global economy slowed down, demand for oil had also reduced, which should lead to lower prices.
Oil moved back up yesterday towards last week's record peak of just over US$135 a barrel which sent shock waves through the airline industry, with warnings that more airlines would collapse.
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