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Page added on June 29, 2007

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$70 Oil: Who Gets Hurt

With oil hanging around $70, and gas likely to move above $3 for all of the summer, it bears looking at who gets hurt:

Airlines: It looked like they might get something of a recovery. Now, firms fresh out of bankruptcy like Delta (DAL) face rising fuel costs and a competitive market for fares.

Cars, pick-ups, and SUVs. Detroit’s recovery is based, at least in part, on fuel prices being at a reasonable level. More profitable pick-ups and SUVs don’t sell well when gas prices are high. Look to Ford (F) to be set-back more than most with its F-series and Explorer losing more ground.

Retail. Wal-Mart (WMT), Target (TGT), and Home Depot (HD) keep mentioning that high gas prices hurt trips to the store. This summer, that will get worse.

24/7 Wall St.

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