High oil prices will adversely affect the reporting of companies in certain sectors

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Since the beginning of the year, Brent crude oil has increased in price by about 26%, WTI - by 22%. The rise in oil prices is beneficial to oil companies. However, Bloomberg writes, there are a number of sectors, the reporting of companies of which in the third quarter will be negatively affected by rising prices. The transport and chemical sectors, as well as consumer stocks are among such sectors. The impact of high oil prices on quarterly results is expected by European airlines, which have increased their capacity during the period of low prices. Now it’s very difficult for them to keep ticket prices low to load these capacities. This situation will also affect companies that need to transport goods and people. Firms that use petroleum products as raw materials will also face higher prime cost.

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