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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% late last week after the Treasury Department announced sweeping sanctions against Russia's oil industry, raising concerns about potential disruptions to global supply.
Brent crudethe global benchmark, rose more than 1% to around $81 a barrel, its highest level since August. West Texas Intermediatethe American benchmark, trading at $78.70 a barrel on Monday afternoon, up nearly 3% from Friday.
Airlines, for whom fuel is a major expense, felt the pressure on Monday. Shares of Delta Air Lines (STILL) and United Airlines (UAL) has decreased by over 2%. American Airlines (AAL) fell more than 4%. Cruise operators such as Carnival (CCL) and Norwegian Cruise Line (NCLH) were also lower, down around 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. Baker Hughes shares (BKR) up nearly 4% and ExxonMobil (XOM) higher by close to 3%.
Travel stocks ended the year strongly as oil prices trended lower and consumers showed few signs that higher prices had eroded robust post-pandemic travel demand. United Airlines was one of the best-performing S&P 500 stocks in 2024. Its shares have more than doubled in value in the past year. Delta has gained around 69% over the same period. Royal Caribbean (RCL) the stock was little changed on Monday but has risen more than 87% in the past 12 months.
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