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Air Transport Association Reacts to Largest One-Day Oil Price Gain in NYMEX History

Written by thomas · Filed Under Aeronautics News 

September 22, 2008

thomas

Volatility Affirms Speculation’s Role

WASHINGTON, Sept. 22 /PRNewswire-USNewswire/ — The Air Transport
Association (ATA), the industry trade organization for the major U.S.
airlines, today reacted to oil’s largest one-day price gain in NYMEX
history, stating that this record increase reaffirms that speculation is
playing a significant role in driving up the price.

Reversing recent price decreases, today oil spiked at $130 per barrel,
closing at $120.92 per barrel — the largest one-day price gain in NYMEX
history. Although ATA recognizes the impact of the financial crisis on Wall
Street, the weak dollar and the aftermath of Hurricane Ike, the
unprecedented 16 percent jump over the weekend — from $104.55 per barrel
last Friday to $120.92 per barrel today — also reflects the impact of
excessive energy speculation.

“The market’s extreme volatility suggests that speculators, who
withdrew tens of billions of dollars from the commodities markets when
Congress threatened to tighten oversight of excessive and harmful
speculation, breathed a sigh of relief last week when action in the Senate
seemed unlikely and returned to the energy markets in full force,” said ATA
President and CEO James C. May. “Well, speculators are back and prices are
up.”

May again called for a bipartisan approach to reining in excessive
energy speculation, stating that Congress must pass a comprehensive energy
plan or all Americans will pay the price as oil prices return to or exceed
this summer’s record levels.

ATA airline members and their affiliates transport more than 90 percent
of all U.S. airline passenger and cargo traffic. For additional information
about the industry, visit http://www.airlines.org.

SOURCE Air Transport Association

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