Chris Ratcliffe/Bloomberg via Getty Images
Oil prices rose to a five-month high on Monday, weighing on the stocks of airlines, cruise lines and other companies whose finances are directly affected by fuel prices.
crude oil price jumped more than 3% Over the weekend, the Treasury Department announced wide-ranging sanctions against the Russian oil industry, raising concerns about potential disruptions to global supplies.
brent crude oilThe global benchmark rose more than 1% to about $81 a barrel, its highest level since August. west texas intermediatethe U.S. benchmark traded at $78.70 per barrel Monday afternoon, up nearly 3% from Friday.
Airlines, which spend a lot of money on fuel, were feeling the pressure Monday. Delta Air Lines stock (Dal) and United Airlines (UAL) fell more than 2%. American Airlines (AAL) fell more than 4%. Cruise companies like Carnival (CCL) and Norwegian Cruise Line (NCLH) also declined, decreasing by approximately 1.6% and 0.6%, respectively.
Meanwhile, oil and gas producers were among the best performers on the S&P 500 index on Monday. Baker Hughes stock (BKR) rose nearly 4%, ExxonMobil (XOM) advanced by nearly 3%.
Travel stocks ended the year on a strong note as oil prices trended lower and consumers showed little sign that higher prices were dampening strong post-pandemic travel demand. United Airlines was one of the best-performing stocks in the S&P 500 in 2024. The company’s stock price has more than doubled in the past year. Delta Air Lines is up about 69% over the same period. Royal Caribbean (R.C.L.) The stock was little changed on Monday, but is up more than 87% in the past 12 months.
Read original article investmentpedia
