Oil nears $91 amids plan to revive US economy

Despite actions from the White House and US Congress, one of those is the stimulus package plan, the oil price is still at its feet, standing proudly with remarkable high tags. Was the plan not enough to pull down the price of oil? US is among the top energy consumers in the world, it is evident that US is the most affected of oil crisis.

U.S. oil had traded as high as $91.38 a barrel earlier as the stimulus plan announced by U.S. legislators and the White House Thursday helped lift global stock indexes and countered mildly bearish U.S. weekly oil inventory data.

"This is all about the stimulus package," said Phil Flynn, analyst at Alaron Trading in Chicago. "Oil markets are taking their cue from the stock market."

Prices gave up some of the gains later Friday as U.S. stocks fell on talk of more trouble in the global financial sector and declines in defensive shares offset strong earnings from companies.

U.S. oil has tumbled from a record over $100 a barrel struck Jan. 3 on growing fears crude demand growth could be hit if the subprime mortgage crisis knocks the U.S. economy into recession.

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US Airways points out fuel costs as cause of their loss

The group of US Airways are starting to feel the intense problem caused by the high fuel costs. If the trend in oil industry will continue, this will break the US Airways wings which will possibly result to total bankruptcy of some Airlines. what are the possible solutions for this, if the fuel costs continue to hamper the Airline industry? Acquisitions and mergers?


Analysts polled by Thomson Financial had expected a loss of 76 cents per share.

Chairman and Chief Executive Doug Parker said high fuel costs are likely to keep conditions difficult during the year ahead -- although he sees some encouraging signs.

"We're encouraged by the industry's ability and desire to keep capacity in check, so, as long as everyone keeps capacity in line, we should be able to continue to be OK," Parker told CNBC.

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