OK, I guess this was somewhat inevitable, given that this year's spike made zero fundamental sense. That said, even a perma-oil-bear like myself has been surprised by the speed of the oil's descent. I mean, we're down another dime on gasoline today alone, and I think heating oil prices might now be below what they were at the beginning of winter. Since this is LCC's biggest expense, and there are no signs of revenue problems, you might think a plunge in fuel prices would not be accompanied by a plunge in LCC stock price.
It seems like jet fuel is lagging the drop in heating oil ... it should be in the 3.10 area now. New cftc rules go into effect 28 Feb requiring transparency for some of the 28 commodity swap trading ... 10 April for the others. Also as I mentioned a few weeks ago, the cftc renewed their fight to put position limits on the 28 commodity swaps. If that can knock 10% off the price of some of these commodities it will go a long way to grease the path for airlines.