Author Topic: Oil Market is LIVE!!!  (Read 215 times)

patson

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Oil Market is LIVE!!!
« on: November 21, 2018, 12:52:20 am »
Brace Yourself! Fuel price in airline-club.com world now fluctuates like in real world!

But fret not! You are offered various options and strategies. If you play your cards right, your company will surely reap the benefits!


Oil Inventory Policy
There are 4 different policies to choose from, All of the airlines by default will use the most conservative policy which shields the airlines from 90% of price fluctuation. Here's a quick explanation how it works:

Oil Market price long term average is always $70 per barrel

For example oil price shoots up to $100 per barrel. With a conservative oil inventory that negates 90% of the impact. The actual price you would have to pay would be:
$70 + $30 * 0.1 = $73

In order words, it negates 90% of the price deviation ($30)

This should provide decent price protection for airlines that do not want to gamble with oil prices. However with such a conservative policy, airlines will also receive less benefits from the low oil price.

Oil inventory policy might only be changed every 50 turns.


Oil Contract
Oil contract fixes the fuel cost for the contract duration. You might choose the volume and the duration of the contract. Price offered varies depending on the current market price and contract duration.

A initial fee will be charged upon signing a new contract.

A penalty will also be imposed if you wish to quit the contract early - the amount depends on the remaining terms.

Lock the price down when you predict the market has reached its lowest point!

For more details please refer to https://airlineclub.createaforum.com/under-development-wish-list-suggestions/oil-market-under-development/



Have fun!!!  :D






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alex

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Re: Oil Market is LIVE!!!
« Reply #1 on: November 21, 2018, 05:33:18 pm »
Is it just me or is the premium over the current price negative when the current price is above the default price? Like, if the current price is $80, and I enter a 200-week contract, that would execute at $75?

patson

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Re: Oil Market is LIVE!!!
« Reply #2 on: November 21, 2018, 09:19:57 pm »
ya that's by design, cause in long run the market is likely to hit $70 again, so they are giving you such an offer.

Not sure if it makes any sense huh...im not a market expert...I dun even invest in stock market rofl
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