Important points
As crude oil futures prices fell, the stock prices of companies affected by crude oil prices rose. Oil prices fell after Israel’s retaliatory strikes against Iran did not target Iranian oil facilities. Shares of drilling companies and oilfield services companies fell, but cruise lines and airlines rose.
Stocks of companies affected by oil prices were the biggest movers in the S&P 500 index on Monday as oil futures fell after Israel’s retaliatory attacks on Iran over the weekend did not affect Iranian oil facilities. It became.
West Texas Intermediate (WTI) crude oil prices fell nearly 6% in late morning trading after Iran’s production remained unaffected. According to the US Energy Information Administration (EIA), Iran accounts for about 4% of global oil trade. Israel’s targeted attacks also eased concerns about further escalation of fighting in the Middle East, which would further impact supplies.
Drilling company, oilfield services stocks fall
Shares of drilling companies such as APA (APA), Diamondback Energy (FANG), and Devon Energy (DVN) fell, as did oilfield services companies Halliburton (HAL) and SLB (SLB).
The SPDR S&P Oil and Gas Exploration and Production Exchange Traded Fund (ETF) fell to its lowest level this month.
On the other hand, stocks of Carnival Corporation (CCL), Delta Air Lines (DAL) and other cruise lines and airlines will rise, benefiting from lower fuel costs.
Analysts at Bank of America on Monday raised their price targets for both Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean Cruises (RCL), saying that Carnival is “more likely than expected when the company reported in September. “We’re very hopeful about booking trends.” RCL and NCLH will reflect this comment until 2025. ”
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