Airlines Take Off As Oil Falls (AMR, UAL, RJET, DAL, JBLU)
On Thursday the International Energy Agency announced that the United States and 28 other nations will release 60 million barrels of oil reserves. Roughly 30 million barrels will come from the United States with the other nations contributing the remainder, according to the New York Times. This action was decided on as a way to reduce the current costs of energy that have been hampering businesses and consumers.
The news is helping the Airline Stocks Index, up 1.8% today, and one of the few bright spots in the market. Due to the war in Libya began, the global supply of oil has been reduced by more than 140 million barrels, according to the New York Times, citing government estimates. This has caused the price of oil to top out around $100 a barrel, which has increased the costs to airlines significantly.
The news is helping many members of the Index, with shares of AMR (AMR) and United Continental Holdings (UAL) both up more than 5%. Elsewhere in the Index, Republic Airways Holdings (RJET) and Delta Air Lines (DAL) are tacking on more than 4%. Shares of JetBlue Airways (JBLU) are contributing 2%.
Investors can track the Airline Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
More on this topic (What's this?)
U.S. Shale Oil Production is Rising (Top Foreign Stocks, 5/17/13)
How the Shock in New Oil Production Could Be the World’s Greatest Scam (Jutia Group, 5/15/13)
Low Gas Prices on High Oil Production (Energy and Capital, 5/14/13)
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