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Oil prices rose to their highest level in five months on Monday, weighing on shares of airlines, cruise operators and other companies whose finances are directly affected by the price of fuel.
Oil price jumped more than 3% late last week after the Treasury Department announced drastic sanctions against the Russian oil industry, sparking concerns about possible disruptions to global supplies.
Brent crudethe global benchmark, rose more than 1% to around $81 a barrel, its highest level since August. West Texas Intermediatethe American benchmark, traded at $78.70 per barrel Monday afternoon, an increase of almost 3% compared to Friday.
Airlines, for which fuel represents a significant expense, were feeling the pressure on Monday. Delta Air Lines shares (DAL) and United Airlines (UAL) fell by more than 2%. American airlines (AAL) fell by more than 4%. Cruise operators like Carnival (CCL) and Norwegian Cruise Line (NCLH) were also down, down about 1.6% and 0.6%, respectively.
On the other hand, oil and natural gas producers were among the S&P 500’s top performers on Monday. Shares of Baker Hughes (BKR) are up nearly 4% and ExxonMobil (XOM) grew by almost 3%.
Travel stocks finished the year strong as oil prices trended lower and consumers showed few signs that rising prices have hurt strong post-pandemic travel demand. United Airlines was one of the best performing stocks in the S&P 500 in 2024. Its stock value has more than doubled over the past year. Delta gained about 69% over the same period. Royal Caribbean (RCL) stock was little changed Monday but is up more than 87% over the past 12 months.
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