None. Southwest didn’t speculate.
There is a difference between speculation and hedging. What SWA did is hedging, not speculation. SWA takes delivery of a commodity - in huge quantities.
Speculators neither produce, nor take delivery on, a commodity. They settle for cash no matter what side of the contract they’re on.
Can you show us their huge storage tanks? Who is on the other side of the contract?
Do you think those idiots in Congress will distinguish between hedging and speculation? Furthermore, the excesses of the hedge funds have provided politicians with perfect spin language.
No they don't.
Speculators neither produce, nor take delivery on, a commodity.
Exactly. So how does buying and then selling a contract days, weeks or months later have a permanent impact on the price?
They ultimately purchase jet fuel. Jet fuel has no futures market but since the biggest price component is crude oil, it follows crude oil pricing.
By trading crude oil futures they have protected themselves in a rising price market.
So what’s wrong with neither producing or taking actual delivery of something a person deals in?