US Stock Alert: International oil prices continue to plummet, airline and cruise stocks surge collectively

Glonghui, June 24 — Airline and cruise stocks rose collectively, with JetBlue Airways and Royal Caribbean Cruises up more than 4%; American Airlines, Alaska Airlines, United Airlines, Carnival Cruise, and Norwegian Cruise all rose over 3%, while Southwest Airlines and Delta Air Lines increased by more than 2%. On the news side, U.S. WTI crude oil futures fell below the key $70/barrel mark during intraday trading, plunging over 4% in a day to hit a new low since March 2, returning to levels seen before the outbreak of conflict in Iran. The retreat in oil prices was driven by easing concerns over the Middle East situation, renewed expectations for the resumption of Iranian oil supply, and expectations of U.S. interest rate hikes due to inflation. Previously, UBS released a research report stating that aviation fuel prices have dropped by about 30% over the past month, and that even with higher ticket prices, travel demand remains strong. Ahead of second quarter earnings, the firm named American Airlines and United Airlines as its top picks, and reiterated its “Buy” ratings on Delta Air Lines, Southwest Airlines, and Alaska Airlines.