Oil Leaps Above $80/Barrel — Airline Stocks Sink


Want to know why most all airline stocks sunk like they had rocks tied to their little feet today?

That’s right. Give the man in the back row with the red shirt on a gold star.

It’s oil. Or rather, the exploding price of oil.

Crude oil futures closed at 81.37 today — up a hefty $2.25.

Why? One major factor– the continued drop in the value of the dollar. The euro climbed about $1.50 today, the highest level since August 2008.

And as all bright PlaneBuzz readers know — oil is priced in dollars. So as the dollar falls in value, international investors start bidding up the price of oil futures as a play against the weakening U.S. currency.

That’s the way the markets work.