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SpiceJet, InterGlobe Aviation shares fall up to 6.27% on rise in global crude oil prices

While SpiceJet share price fell up to 6.27% to Rs 123.35, InterGlobe Aviation share lost 3.74% to Rs 1654.1 on BSE.

twitter-logo BusinessToday.In        Last Updated: September 16, 2019  | 14:56 IST
SpiceJet, InterGlobe Aviation shares fall up to 6.27% on rise in global crude oil prices
Any change in international oil prices affects cost of ATF for domestic airlines. SpiceJet share price has been losing for the last two days and fallen 4.81% during the period. Similarly, InterGlobe Aviation share price has fallen 3.06% during last two days.

SpiceJet and InterGlobe Aviation share prices fell in trade today after a drone attack on Saudi Arabia's oil facilities pushed global crude prices sharply higher. While SpiceJet share price fell up to 6.27% to Rs 123.35, InterGlobe Aviation share lost 3.74% to Rs 1654.1 on BSE. Aviation turbine fuel (ATF) used for flight operations is an expense for airlines.

Any change in international oil prices affects cost of ATF for domestic airlines. SpiceJet share price has been losing for the last two days and fallen 4.81% during the period. Similarly, InterGlobe Aviation share price has fallen 3.06% during last two days.

SpiceJet stock has gained 61% during last one year and gained 42% since the beginning of this year. InterGlobe Aviation share too has risen 88.7% during last one year and gained 43.53% since the beginning of this year.

Yemen's Iran-backed Houthi rebels conducted drone attacks on two Saudi Aramco factories in Abqaiq and Khurais provinces on Saturday. After the attack, the Saudi oil major halted production of 5.7 million barrels of crude a day, more than half of Saudi Arabia's global daily exports and more than 5% of the world's daily crude oil production. Most output goes to Asia.

The fall in production led to a surge in global oil prices. US crude oil jumped $5.61 per barrel, or 10.2%, to $60.46 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, surged $7.84 per barrel, or 13%, to $68.06 per barrel.

Edited by Aseem Thapliyal

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