Crude oil prices soared after Saudi Arabia and Iran were getting closer to war.
In addition, Saudi Arabia crown prince ordered a sudden purge of the elites.
We can expect to pay more at the pumps. With a 10-cent per gallon jump, for instance, it will cost about $1.30 more to fill up your car. If you do this weekly, it will cost you about $5.20 more per month. It’s not a terrible disaster but it depends on how the events and situations will escalate in the near future. If things get worse and drag longer, the gasoline prices will continue to rise higher, which is not good for us consumers. Particularly, it’s not good for the airlines because their profits will shrink if the oil prices keep rising.
If you own stocks in the airlines sector, watch them closely.
Delta, for example, was up almost 10% year to date in mid-October. Now, it’s almost given back all of the 10% gain in just about 15 days.