Stocks

Oil price tumbles spurring a rise in airline stock

NEW YORK – Stocks are opening mixed as tumbling oil prices weigh on energy shares but give a lift to airlines and delivery companies.

Air Canada (TSE: AC) stock rose by almost 10% yesterday with WestJet and Transat AT (TSE:TRZ.B)  also showing strong gains.

Market players were focused on Thursday’s decision by the OPEC oil cartel to keep crude production at 30 million barrels a day despite global oversupply. The move hit oil prices as traders anticipated supply levels at their current rates at least for a few months yet.

Benchmark U.S. oil slid 6 per cent to $69.41 USD –  below $70 for the first time since June 2010.