DO NOT WRITE OFF THE NEED FOR A GOOD FUEL HEDGE POLICY

Analysts predict oil prices to rise to $100 per barrel (/bbl) in 2012. Although prices have hovered around $75-85/bbl during the past 12 months, analysts expect a return to the price of oil tracking supply and demand fundamentals now that concerns over the economic recovery and any potential double dips are fading in several regions, especially the Asia Pacific region. In a recent survey by Energy Risk magazine, some 14 oil analysts said they expect oil prices to average $85.36/bbl for the New York Mercantile Exchange’s (Nymex) light, sweet crude contract (WTI) in 2011 and $83.47/bbl for the Intercontinental Exchange’s