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Oil prices rose to a five-month high on Monday, weighing on stocks of airlines, cruise operators and other companies whose finances are directly affected by the price of fuel.
Oil prices rose more than 3% late last week after the Treasury Department announced sweeping sanctions against the Russian oil industry, raising concerns about potential disruptions to global supply.
Brent crude, the global benchmark, rose more than 1% to around $81 a barrel, its highest level since August. West Texas Intermediate, the US benchmark, was trading at $78.70 a barrel on Monday afternoon, up nearly 3% from Friday.
Airlines, for which fuel is a big expense, felt the pressure on Monday. Delta Air Lines Stock (give it) and United Airlines (UAL) fell more than 2%. American airlines (AAL) fell more than 4%. Cruise operators such as Carnival (CCL) and Norwegian Cruise Line (NCLH) were also lower, about 1.6% and 0.6%, respectively.
On the other hand, oil and natural gas producers were among the S&P 500’s best performers on Monday. Baker Hughes Stock (BKR) rose almost 4% and ExxonMobil (XOM) advanced nearly 3%.
Travel stocks finished the year strong as oil prices trended lower and consumers showed little sign that higher prices have hurt robust post-pandemic travel demand. United Airlines was one of the best-performing stocks in the S&P 500 in 2024. Its stock has more than doubled in value in the past year. Delta has gained about 69% over the same period. royal caribbean (RCL) shares were little changed on Monday, but are up more than 87% in the past 12 months.
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