Reacts To Largest One-Day Oil Price Gain In NYMEX History

If you're looking for some good news about the economy... don't read this. The Air Transport Association (ATA) -- lobbying group for the nation's largest airlines -- reacted Monday to oil's largest one-day price gain in NYMEX history... stating the record increase reaffirms that speculation is playing a significant role in driving up the price.

Reversing recent price decreases, Monday's 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 Monday -- 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 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 US airline passenger and cargo traffic.

FMI: www.airlines.org