Oil Surges Above $100, US Global Jets ETF Faces Sector-Wide Fuel Shock
West Texas Intermediate crude jumped into the $100-per-barrel range, marking a 60% rally over the past month and sending US Global Jets ETF shares lower as airline fuel costs spike. American Airlines shares plunged from the low-$13 area to near $10.70 after a downgrade and strained profit forecasts.
1. Oil Prices Surge Past $100
West Texas Intermediate crude has jumped over $100 per barrel, a roughly 60% increase in the past month driven by supply disruptions in the Strait of Hormuz and escalating Middle East tensions.
2. ETF and Airline Stock Pressure
US Global Jets ETF, tracking major U.S. airlines, fell alongside American Airlines shares, which slid from the low-$13 range to about $10.70. Airline variable costs have spiked, limiting carriers' ability to absorb higher jet fuel expenses.
3. Earnings and Rating Adjustments
Analysts have downgraded American Airlines, cutting its price target from $17 to $12.50, while Delta and United face double-digit year-to-date share declines. If crude oil remains elevated, profit forecasts for these carriers will likely be revised lower.