Hedging can also mean trading long or short in monthly future derivatives contracts or options based on the underlying commodity. However most operators are not that financally savy.

The key thing to keep an eye on is the Dollar. Its weakness against the other major currency crosses is making the crude price rises more manageable, due to Oil derived products being traded in US Dollars.

If however, the Dollar starts to strengthen against the Euro / Pound making Oil derived products proportionally more expensive, thats the cue for Fuel Surcharges.

BA (and Lufthansa I think) have already announced that a fuel supplement will be charged to any flights booked as of last week.

.how much more money can they screw from us.... .

After reading today petrol prices could hit £1.50 a litre by this time next year it makes one wonder how high aviation fuel will be and what level of fuel supplement.

I can see oil hitting $120 dollars a barrel. This will be the same level of the oil crises in the 70's in real terms when a recession kicked in with holiday companies going bust and large fuel supplments being levied. The fuel supplements were so high many families couldn't afford them and had to cancel.

The worrying part is even if you have booked your holiday some companies do not guarantee no fuel supplement after booking will not be added.

The credit crunch from the US collapse of the sub prime mark and high oil prices are a perfect formule for a world recession to start.

Oh My God .how much more money can they screw from us.... banghead .

I completely agree. Bloody Saudi Arabia, Scotland and all those other oil producing nations. Stop increasing the prices of that rapidly depleting oil supply - we want cheap holidays for darn sake!

Stop increasing the prices of that rapidly depleting oil supply - we want cheap holidays for darn sake!

And ensure that it runs out even quicker! I realise that you were being ironic Travelling Sam and didn't mean us to take your comment literally but I think that we do all need to realise that the more we demand holidays and expect to travel to ever more out of the way places for them, the more demand for oil will go up, the scarcer it will become in the long run and the more prices will rise. That's the way markets work.

North Sea oil is not only running out but the oil and gas currently being extracted, now costs far more to produce than it ever did as more distant, more difficult to access reserves are being tapped. This is why prices are rising. It really is about time we all woke up and began to smell the coffee - or rather the fumes from us burning up our greatly depleted natural resources. The more cheap holidays we take now, the fewer of us will be able to take any holiday at all in the future. Or afford to heat our homes. And don't think that global warming will compensate on that front either. One of the effects of the melting ice caps will be that all that cold water will push the Gulf Stream south and global warming could actually result in Scotland becoming colder as a result. So hands off! It's oor oil! :-)

SM

Well I think we should all invest in a caravan!! But seriously, yes I do think the supplements will be back and in turn this could perhaps see some of the no frills airlines closing down.

So hands off! It's oor oil! Smile

You can keep it - as long as you take Gordon Brown with you though!

There is no such thing as man made global warming, the planet is getting warmer because the earth is in a closer orbit of the sun.

What they don't tell you they have got at least 50 years in reserves of what they know about. There is meant to be a massive amount of oil around the farkland islands, they just can't it out at present but in the future they will.

What is behind todays problems of high oil prices is china, china is sucking in any spare oil, they have even bought oil companies to use the oil in china only. India is not helping they are sucking in oil like nobody's business. The blame for china and india using so much oil is the US fault. US co's have built factories to make every product because of the cheap labour. Thats why nearly every product has made in china on it somewhere.

A world recession would bring price back to levels that wouldn't cause any problems, a price range between $40 to $60.

thomas cook and cosmos have introduced fuel supplements.

And will get closer and closer to the sun untill the earth will be too hot for habitation,but please dont tell that to the idiots who want to put a surcharge on flying.

I completely agree. Bloody Saudi Arabia, Scotland and all those other oil producing nations. Stop increasing the prices of that rapidly depleting oil supply - we want cheap holidays for darn sake

If the price isnt increased it would go all the faster thats the laws of supply and demand i am afraid.

Saudia Arabia and all the other suppliers of oil could charge what they want its their oil.

If the price isnt increased it would go all the faster thats the laws of supply and demand i am afraid.

Saudia Arabia and all the other suppliers of oil could charge what they want its their oil.

It was meant entirely tongue in cheek!

Monarch have increased their flight supplement on short haul and short haul + to £40 and long haul to £80.

Pretty painful for anybody who haven't booked yet.