Southwest Airlines

Obviously, if everybody tries to do the same, the escalation will never end: the sky will be the limit. This It is because not everyone can protect or immunize fully against increases in the price of oil. That is the greatest threat. Adds Henisz, which must also be uncertainty by the demand side. How much grow demand in China, the India and other countries of the world? Siegel adds another aspect that is important, as where there is a very thin line between speculation and buying for a future that will be much more expensive.

I think that people realize how important that is hoarding some assets of petroleum producers in their portfolios. If everyone thinks this way, its price will rise. It is not only speculators who make the price goes up. It’s a scarce resource that the world uses increasingly more and more quickly. The panic that oil rises ever plan for heaven and this is what is generating increases. Meanwhile Henisz: indicates, if you study the probability that a country fails to produce, the substantial increase in the price of oil is a factor with the that people is counting. Is it speculation or coverage? When Southwest Airlines covers your future supply of petroleum is considered that it is acting intelligently against other airlines. That is not speculation; It is coverage. It is very important to take into account with regard to increases in the prices of oil, that this is not only a problem of the United States and its impact it may be generating in its economy, with the devaluation of the dollar, since as indicated by Siegel, the problem is global, carriers in the United Kingdom currently threaten to go on strike because the price of gasoline has increased greatly and they can not move that increase costs as easily as in the United States.

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