Airline and Cruise Stocks Slide as Oil Prices Surge to 5-Month High

Compare
Payout Min deposit Promo code Win rate(%) Welcome bonus Rating
Gama
60 min. 20 $ RUBYSKYE 60 % 500 + FS
PLAY NOW
1win
2 hr. 20 $ RUBYSKYE 60 % 500 + FS
PLAY NOW
Promo
Catcasino
60 min. 40 $ RUBYSKYE 60 % 500$ +150 FS
PLAY NOW
Promo
Vavada
60 min. 40 $ RUBYSKYE 60 % 500$ +150 FS
PLAY NOW
Better
60 min. 20 $ RUBYSKYE 60 % 500 + FS
PLAY NOW

Chris Ratcliffe / Bloomberg via Getty Images

Oil prices rose to a five-month high on Monday, weighing on the stocks of airlines, cruise operators, and other companies whose finances are directly affected by the price of fuel.

Oil prices jumped more than 3% at the end of last week after the Treasury Department announced sweeping sanctions against the Russian oil industry, raising concerns about possible disruptions to global supply.

Brent crude, the global benchmark, rose more than 1% to about $81 a barrel, its highest level since August. West Texas Intermediate, the American benchmark, traded at $78.70 a barrel on Monday afternoon, a nearly 3% increase from Friday.

Airlines, for which fuel is a large expense, were feeling the pressure on Monday. Shares of Delta Air Lines (DAL) and United Airlines (UAL) fell over 2%. American Airlines (AAL) slumped more than 4%. Cruise operators like Carnival (CCL) and Norwegian Cruise Line (NCLH) were also lower, down about 1.6% and 0.6%, respectively.

On the flip side, oil and natural gas producers were among the S&P 500’s best performers on Monday. Shares of Baker Hughes (BKR) were up nearly 4% and ExxonMobil (XOM) advanced close to 3%.

Travel stocks finished the year strong as oil prices trended lower and consumers showed few signs that higher prices have dented robust post-pandemic travel demand. United Airlines was one of the S&P 500’s best-performing stocks in 2024. Its shares have more than doubled in value in the past year. Delta has gained about 69% over the same period. Royal Caribbean (RCL) stock was little changed Monday but has risen more than 87% in the last 12 months.

Read the original article on Investopedia

See also  The Doomsday Trade: These 3 Assets Could Skyrocket if WW3 Breaks Out
Translate »